Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Ride-hailing rivalry intensifies as Kakao, Uber launch membership services
A Kakao taxi is parked at Seoul Station in this Nov. 2, 2023, photo. Yonhap
By Lee Gyu-lee
Membership programs offer cashbacks, perks, curated benefits for frequent riders
The mobility market is entering a fierce membership war as leading ride-hailing services Kakao Mobility and Uber both roll out paid subscription programs, aiming to secure loyal customers and build stable revenue.
Kakao Mobility recently launched its subscription service, Kakao T Members, targeting frequent users with a curated package of benefits. Meanwhile, Uber Taxi is introducing Uber One to the Korean market, setting up to challenge Kakao’s long-standing dominance by offering attractive rewards while matching its competitor's pricing.
Kakao Mobility membership, officially launched Aug. 27, comes in two options: Mobility Plus and My Car Plus.
Mobility Plus, priced at 4,900 won ($3.52) per month, is targeted at taxi users. It offers 3 percent payback in points when using premium taxi services like Venti or Black, and 5 percent payback for bike- or pet-friendly ride services. It also includes coupons to use its Blue and Booster services, and up to 20,000 won worth of monthly coupons for selected rental cars, leisure activities and overseas ride-hailing services.
The My Car Plus membership, offered at 5,900 won per month, caters to car owners with benefits including a monthly parking fee discount up to 10,000 won, special parking pass deals for nights and weekends, and up to 3,000 KakaoNavi points per month.
Meanwhile, Uber announced on Aug. 26 that it will bring its flagship membership service Uber One to Korea, promising straightforward rewards on taxi rides.
For the same monthly price as Kakao’s Mobility Plus, Uber One members can earn up to 10 percent payback in credits for each taxi ride, which can be used on future trips. For nonaffiliated services on the platform for general taxi, deluxe taxi and Uber Green, the payback will be 5 percent for each ride.
Those who opt for an annual subscription at 49,000 won can enjoy a roughly 17 percent discount compared to monthly payments.
Uber taxis parked at a taxi station / Courtesy of Uber Taxi
Kakao Mobility, as the dominant player in the market, has already successfully locked drivers and passengers into its ecosystem, and is now seeking to further expand its loyal consumer base with a suite of benefits that weave into daily life.
Challenging this model, Uber Taxi is strategically focusing on delivering immediate and higher value, making its membership particularly enticing for users whose main concern is straightforward taxi rewards rather than the benefits of a broader ecosystem.
“While metrics like supply cost, dispatch success rate and overall service quality have improved, Uber still faces the challenge of making a lasting impression on Korean customers,” Song Jin-woo, Uber Korea general manager, said during a press conference to introduce Uber One.
“The launch of Uber One is aimed at attracting and retaining new customers, and this rollout marks an important milestone for Uber in the Korean market.”
Uber One’s effectiveness has already been proven in overseas markets. Since first launched in the United States in November 2021, Uber One’s subscriber base has soared, with membership fees exceeding a $1 billion run-rate as of last year.
It has reached over 30 million members with 60 percent year-on-year growth in this year’s first quarter earnings. The company noted that subscription members are generating 32 percent of mobility and delivery gross bookings and more than 45 percent of delivery gross bookings specifically.