First Approvals for Three Platform Transportation Businesses Including Taxis Specialized for Transportation-Disadvantaged and Corporate Luxury Rental Cars

Ministry of Land Platform Transportation Business Deliberation Committee Approves 3 Operators... First Case Since Institutionalization

A new type of mobility business that allows the public to enjoy more diverse and convenient transportation services, such as taxis specialized for transportation-vulnerable groups and premium rental cars for corporate use, is set to be fully launched.

The Ministry of Land, Infrastructure and Transport announced on the 29th that it held a Platform Transportation Business Deliberation Committee meeting and approved the platform transportation business license applications of three operators: Coactors, Rain4Company, and Papa Mobility. Following this decision, licenses were granted for 100 vehicles for Coactors (in Seoul, Gwangmyeong, Bucheon, and Incheon areas), 220 vehicles for Rain4Company (in Seoul and Seongnam areas), and 100 vehicles for Papa Mobility (in Seoul and Incheon areas). This is the first case since the Passenger Transport Service Act, which institutionalized platform businesses, was amended in April last year.

The three licensed operators have been conducting pilot services under regulatory exemptions granted by the government since July last year. Now that their temporary permits have been converted into official platform transportation business licenses, they can continue their operations more stably.

Platform transportation business is a type of business where the platform operator directly secures the transportation platform and vehicles to provide differentiated services from existing ones. Unlike taxis, it operates only through platform-based call and reservation methods and is subject to flexible regulations regarding business areas and fares. Additionally, to coexist with existing transportation businesses, operators must pay a Passenger Transport Market Stability Contribution by choosing one of the following methods: 5% of sales, 400,000 KRW per vehicle per month, or 800 KRW per trip. These funds are used for taxi reduction and welfare projects for taxi drivers.

The Deliberation Committee granted final approval after evaluating service plans that can create new transportation demand, consumer protection and worker management plans, as well as assessing transport capacity based on regional traffic congestion and taxi operation status.

Looking at each business in detail, Coactors provides specialized services targeting transportation-vulnerable groups such as wheelchair and stroller users, passengers needing assistance, and people with speech disabilities. It employs hearing-impaired drivers and is known as the "Silent Taxi." To accommodate wheelchair and stroller users, Coactors plans to use not only Renault Samsung (QM6) vehicles but also British black cab taxis (LEVC TX5). Additionally, Coactors is designated as a standard workplace for the disabled, so companies obligated to pay disability employment levies can enjoy up to a 50% reduction in the levy amount when using its services.

Rain4Company offers a premium B2B transportation service that replaces corporate business vehicles. Unlike taxis, which mainly serve general passengers, it targets professionals through contracts with large law firms and corporations, providing executive chauffeur services, protocol vehicles, and more in the form of monthly subscription products. Vehicle models include Genesis (G80, G90), Mercedes-Benz (EQC), and Carnival Hi-Limousine, clearly differentiating it from regular taxis.

Papa Mobility is characterized by using vehicles such as Carnival and Staria to support wheelchair boarding and provide child car seats. It aims to offer customized services that assist pregnant women, the elderly, and children by supporting door-to-door transportation.

The Ministry of Land, Infrastructure and Transport plans to closely monitor the overall transportation market situation following this license issuance and reflect the results in the next licensing deliberation. Furthermore, it will manage and supervise platform transportation operators to ensure lawful service provision and allocate the contributions paid by platform operators to taxi reduction projects and improvements in working conditions for transportation workers.

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