Kakao at odds with taxi drivers over Uber-style service

By Jun Ji-hye

Kakao has been at odds with taxi drivers over its plan to launch an Uber-style sharing, which the drivers claim will reduce the number of their passengers.

Supporters of Kakao Mobility's attempt to tap into the industry saying the service ― in which car drivers can pick up passengers using the Kakao app and charge them for driving them to their destinations ― is expected to use advanced technology such as artificial intelligence, creating an innovative means of transportation.

But taxi drivers oppose the plan, claiming that the service will take away their jobs.

Kakao Mobility is a Kakao subsidiary formed in August to expand and monetize transportation services.

An official from Kakao Mobility said Wednesday that the firm is currently preparing for the launch of the service app, with industry sources saying the firm seems to have almost completed its preparation.

The firm began this in earnest after acquiring the “private taxi-style” startup Luxi in February.

Once Kakao's service begins, there is the possibility for it to attract a considerable number of taxi passengers, given that it is expected to be cheaper.

The standing law bans privately owned cars from being offered for such services, but an exception clause states that they can be used for these during commute times.

The Kakao Mobility official said, “We plan to operate the service within the law.”

A union representing taxi drivers, however, said the service was “illegal,” claiming that the companies were interpreting the law arbitrarily.

“The illegal business is threatening our right to live,” the union said in a statement posted on its website. “If about 2 million cars are used in the 'car pool' service, about 57 percent of the daily business of taxi drivers will be encroached upon.”

The union said it will fight until the end, calling on the government to take the side of taxi drivers as it has vowed to help the industry.

The drivers are also calling on the National Assembly to pass a bill this month designed to ban the launch of service apps allowing private cars to be essentially used as taxis. They said the union will hold a large-scale rally in October if the bill is not passed.

The government has yet to come up with a clear position. The presidential committee on the Fourth Industrial Revolution held a two-day meeting from Sept. 4, and said, “There is the need to look into various means of mobility to improve taxi services. Cooperation with ICT companies is also necessary.”

But it could not be seen as an agreement as those in the taxi industry did not attend the meeting.

“We will continue to consult with the various people concerned, including taxi drivers,” said the Kakao Mobility official.