Ryu Geung-seon, CEO: "Priority dispatch based on acceptance rate is for users... Deeply regret responsibility for 'call favoritism' controversy"

Ryu Geung-seon, CEO of Kakao Mobility, is holding an online press conference on the 7th.

[Asia Economy Reporter Seungjin Lee] Ryu Geung-seon, CEO of Kakao Mobility, expressed deep regret over the insufficient responsibility taken during controversies such as taxi 'call boosting.' CEO Ryu announced plans to utilize a 50 billion KRW scale mutual growth fund aimed at co-prosperity, pledging to cooperate more closely with the taxi industry.

On the 7th, during an online press conference marking the 7th anniversary of Kakao Taxi's launch, CEO Ryu stated, "During the COVID-19 pandemic, the number of corporate taxi drivers nationwide decreased by 26%, and in Seoul, corporate taxi drivers dropped by 31%, making it difficult to use taxis at night. I believe this environment has been a significant factor in conflicts within the mobility industry."

He added, "We are trying to resolve these issues in various ways, but I think joint efforts from different sectors of the industry are necessary. Unfortunately, there were controversies such as call boosting and infringement on local businesses during these efforts."

He said, "I deeply feel the lack of responsibility during this process," and added, "I will share the results of trust-based co-prosperity and ESG management plans going forward."

Regarding the 'call boosting' controversy, CEO Ryu explained that the recently disclosed AI dispatch structure by Kakao Mobility centers on a virtuous cycle structure that satisfies both users and suppliers.

On reflecting the 'acceptance rate' in the dispatch structure, he explained, "If the acceptance rate is excluded from dispatch, taxis closest in location are mechanically dispatched, which can lead to longer waiting times for passengers, reducing both platform competitiveness and driver earnings. This is not to favor franchise taxis but to enable users to access taxis as quickly as possible."

He continued, "If the acceptance rate is not considered, reverse discrimination against hardworking drivers may occur. In the system, not only franchise taxis but also general taxis can be prioritized based on acceptance rates, and franchise taxis with low acceptance rates are not given priority dispatch," he added.

CEO Ryu also announced plans to utilize the 50 billion KRW mutual growth fund.

He said, "Although there have been many conflicts with the taxi industry, we will cooperate more. Over the next five years, we will establish a 50 billion KRW mutual growth fund to benefit various participants."

According to Kakao Mobility, the company plans to allocate 37 billion KRW over the next five years to improve earnings for taxi drivers and designated drivers, 8 billion KRW to improve working conditions for mobility workers, and 5 billion KRW for co-prosperity with small businesses.

He stated, "Some may feel this amount is insufficient, but from the company's perspective, achieving a 10 billion KRW scale surplus for the first time last year after five years of spin-off is a significant amount. Through (Kakao) community cooperation, we plan to additionally raise about 50 billion KRW to be used mainly for mobility-vulnerable groups," he concluded.

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