Revived Tada Targets Franchise Taxis as 'Meggi' Competitors

[Asia Economy Reporter Buaeri] 'Tada,' which had disappeared from the roads for a while, is now speeding ahead again. As it achieves success in the franchise taxi business, the number of taxis bearing the 'Tada' name is increasing. The franchise taxi market, led by Kakao and Macaron, is becoming even more competitive with Tada's entry.

According to the Ministry of Land, Infrastructure and Transport on the 3rd, Tada operator VCNC has secured about 1,000 franchise taxis in the Seoul and Busan areas. VCNC is currently operating the franchise taxi brand 'Tada Light' as a beta service throughout Seoul. VCNC stated, "We plan to officially launch Tada Light in Seoul, Busan, and Seongnam within this year."

A franchise taxi operates on a franchise concept, where the platform company manages the taxi service and receives commissions. The service of Tada Basic, which gained popularity operating with Carnival vehicles, has been applied to the franchise taxi Tada Light as is. Tada Light incorporates the highly praised features from Tada Basic, such as 'immediate dispatch without ride refusal,' and emphasizes a comfortable interior environment and quiet driving as its strengths.

After the amendment of the Passenger Transport Service Act in March, Tada faced hardships, including shutting down the 'Basic' business represented by white Carnivals and reducing staff. Choosing franchise taxis as a stepping stone for recovery was because this area offers business stability and the fastest way to secure a cash cow. Since franchise taxis operate based on taxi licenses, they are free from opposition by the taxi industry. Moreover, unlike regular taxis, which are regulated in terms of fares, services, and taxi appearance, franchise taxis can legally create various revenue models.

An industry insider said, "Tada, having already established a platform base while operating Basic, needed a business to generate operating funds," adding, "Within the current legal framework, franchise taxis are the easiest choice."

Besides franchise taxis, Tada has also entered the designated driver brokerage service. Users can call a designated driver through the 'Tada' app. This service incorporates data and dispatch know-how accumulated over the past two years of operating the Tada platform. Additionally, the commission is set at an industry-low 15%, aiming to gain an advantage in competition with early market players. VCNC CEO Park Jae-wook said, "We will grow Tada into a convenient and safe mobility platform that upholds the basics of transportation," and added, "We will do our best to ensure mutual growth among users, drivers, and franchise transport companies."

With Tada entering the franchise taxi market, competition with Kakao has become inevitable. Currently, the franchise taxi market is a battleground between Kakao Mobility's Kakao T Blue and KST Mobility's Macaron Taxi. Kakao T Blue operates about 10,372 vehicles, and Macaron Taxi about 10,600. Additionally, the global company 'Uber,' which recently formed an alliance with SK Telecom, is also preparing to enter the franchise taxi market.

Professor Choi Kyung-jin of Gachon University said, "Competition in the franchise taxi market has intensified with Tada's entry," and predicted, "As consumer perception of ICT-based franchise taxis improves, various services that were unimaginable in the past will be offered."

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