[Exclusive] This Time Internal Conflict... Angry Kakao Franchise Taxi Drivers Form 'Council'

[Asia Economy Reporter Buaeri] As Kakao Mobility faces conflicts with the taxi industry over the launch of its paid service, claims have now emerged that franchise taxi drivers of 'KakaoT Blue' are also experiencing power abuse.

According to the taxi industry on the 1st, individual taxi drivers of 'KakaoT Blue' who have franchise contracts with Kakao Mobility have launched the 'Taxi Mobility Franchise Owners Council.' While conflicts have continued with taxis that do not have franchise contracts with Kakao Mobility, dissatisfaction has now surfaced even within Kakao Mobility itself.

Song Seung-hoon, a KakaoT Blue driver and representative of the council, said in an interview with Asia Economy, "Drivers are suffering losses due to the way Kakao Mobility deducts franchise fees," adding, "When we request improvements through the contracting company, the response is 'If you don't want to, then leave.' The taxi market is in a situation where operating without Kakao's calls is impossible, yet they are engaging in power abuse."

'KakaoT Blue' is a type of taxi that has a franchise contract with Kakao Mobility. Taxi drivers pay franchise fees and use Kakao Mobility's brand and infrastructure.

The council's claim is as follows: Kakao Mobility takes 20% as a franchise fee but then returns 15-16.5% of the amount, causing an issue where sales figures are inflated during the calculation process.

For example, assuming monthly sales of 5 million KRW, Kakao Mobility deducts 1 million KRW, which is 20% of sales, as a franchise fee. Then, they contact the driver saying, "This month's refundable activity fee and call commission is 850,000 KRW," and ask to issue a cash receipt. Individual taxi drivers, as sole proprietors, issue a cash receipt for 850,000 KRW to Kakao Mobility and receive 850,000 KRW in return.

Song said, "By issuing a cash receipt for 850,000 KRW, sales are measured as 5.85 million KRW, creating an unfair situation where money we never touched is counted as sales," and lamented, "As income increases, we have to pay more for health insurance, pension, and income tax."

In response, Kakao Mobility explained, "This issue arose from drivers misunderstanding the franchise contract as a 'pay-back' system."

According to Kakao Mobility, KakaoT Blue individual taxi drivers enter into two separate contracts: a 'franchise contract' and an 'affiliation contract.' The 'franchise contract' is signed with KM Solution, a subsidiary of Kakao Mobility, and the 'affiliation contract' is signed with Kakao Mobility.

The franchise contract is the fee taxis pay to KM Solution for using the 'KakaoT Blue' brand, while the affiliation contract involves Kakao Mobility utilizing 'operation data' generated by the taxis during their service and paying the taxis for that data.

A Kakao Mobility official stated, "Due to the affiliation contract, corporations issue tax invoices, and individual proprietors issue either tax invoices or cash receipts," adding, "This is a legitimate procedure for individual taxi operators to bill Kakao Mobility for providing data."

The company also explained that individual taxi operators can terminate the contract at any time if they do not wish to continue. The official added, "We also fully inform individual taxi operators that they may lose their simplified taxpayer status as their sales increase."

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