[Exclusive] KakaoTaxi Raises Fast Dispatch 'Smart Call Fee' Up to 5,000 Won

[Asia Economy Reporter Buaeri] Kakao Mobility has changed the fare policy for 'Smart Call,' a feature that allows users to get taxis faster by paying more, from the previous 1,000 won to '0 won~up to 5,000 won.'

According to the IT industry on the 4th, Kakao Mobility has been applying a dynamic pricing method to Smart Call since the 2nd. Smart Call is an artificial intelligence (AI) dispatch system that increases the success rate of taxi calls.

While the previous free call method sequentially sent information to taxi drivers located near the user, Smart Call analyzes expected distance and time, past driving patterns, traffic conditions, and more through AI to increase the probability of a response. Because of this, many users have paid a premium of about 1,000 won (2,000 won late at night) to use this service when taxis were hard to find on the Kakao T app.

However, with the policy change, users may have to pay up to 5,000 won to use Smart Call. Depending on the situation, the call fee could be more expensive than the basic taxi fare (3,800 won). The Smart Call fee structure is such that Kakao Mobility takes 40% and taxi drivers share 60%.

Previously, Kakao Mobility had announced the launch of a paid model called 'Immediate Dispatch' in 2018 and intended to charge up to 5,000 won. However, due to strong public backlash and intervention by the Ministry of Land, Infrastructure and Transport, a 1,000 won fee was set and 'Smart Call' was implemented. This was in the same price range as existing call taxi companies.

Regarding this, Kakao Mobility explained that it applied the dynamic pricing method after reporting to the Ministry of Land, Infrastructure and Transport. Kakao Mobility's position is that this is not an increase in the Smart Call fee. Since the Smart Call fee operates dynamically within the 0 won to 5,000 won range, prices lower than 1,000 won may also be set. A Kakao Mobility representative said, "Because there is now a 0 won range, when demand is low and supply is high, the call fee decreases," adding, "The 5,000 won fee will only apply in extreme exceptional cases."

Experts point out that 'transparency of information' could be an issue. It is difficult for users to understand how Kakao Mobility determines the fare between 0 and 5,000 won and whether Smart Call was actually executed according to the algorithm. Professor Choi Kyung-jin of Gachon University’s Department of Law said, "From the user's perspective, it is impossible to know whether benefits from Blue (franchise taxis), Smart Call, or general calls are appropriate for each individual," and added, "Since the platform holds information superiority, the government needs to continuously monitor and verify the process."

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