"Prepaid and Co-Rider Fare Plans Coming?" First Application of 'App Meter' on KakaoT Blue

[Asia Economy Reporter Seulgina Cho] Kakao T Blue, the leading platform for mid-sized taxis, has installed an 'app meter' based on a satellite positioning system (GPS) instead of the traditional mechanical meter that measures fares by wheel rotations. This innovation is expected to enable various additional services such as prepaid plans, monthly subscriptions, and shared ride fare systems.

Kakao Mobility announced that starting from the 24th, it will introduce the app meter to Kakao T Blue, marking the first time a mid-sized taxi has adopted this technology. Following the temporary approval under the regulatory sandbox system granted by the Ministry of Science and ICT last September, Kakao T Blue also became the first to pass the Ministry of Land, Infrastructure and Transport's 'Temporary Verification Standards for App Meters.' This is the first time an app meter has been introduced in mid-sized taxis rather than specialized models like Kakao T Black.

The app meter calculates taxi fares based on time, distance, and speed using GPS. Unlike the existing mechanical meters, which require manual adjustments whenever fares change, including toll fees, the app meter automates this process, eliminating inconvenience. The Ministry of Science and ICT estimated that manual operation of mechanical meters in Seoul alone cost about 4 billion KRW.

As a result, consumers can now check taxi fares in real time through the application, with automatic calculations of toll fees and off-peak surcharges. This reduces the possibility of fare disputes caused by input errors, improving convenience for both drivers and passengers.

Additionally, the app meter enables the application of various fare systems, such as dynamic pricing that allows additional charges during peak hours like commuting times. The industry anticipates the introduction of shared ride fare systems that match customers with overlapping routes for discounted prices, prepaid fare systems to address short-distance ride refusals, and monthly subscription plans targeting frequent taxi users.

To implement the app meter, Kakao Mobility has worked on integrating controls for taxi roof lights and vacant indicators, while enhancing map-matching technology to minimize route estimation errors.

The initial rollout of Kakao T Blue with the app meter will involve 10 vehicles. The company plans to expand the service to general taxis beyond franchise brand taxis in the future. This expansion is expected to eliminate the unusual scenes of long taxi queues forming whenever mechanical meters need to be replaced due to fare increases.

Ryu Geung-seon, CEO of Kakao Mobility, stated, "The GPS-based app meter enables services such as dynamic pricing and pre-determined fare systems that were impossible with mechanical meters, expanding user choices and contributing to improved convenience."

This content was produced with the assistance of AI translation services.