"'Top Instructor' Won Hee-ryong's 3 Clever Solutions to the 'Late-Night Taxi Crisis'"

Seoul City Operates Personal Taxi 3-Day Rotation System
Considering Dynamic Pricing with 25-100% Fare Increase
Considering Introduction of New Mobility Forms

On the 31st, Won Hee-ryong, Minister of Land, Infrastructure and Transport, proposed measures such as lifting the personal taxi restriction system and introducing a flexible fare system to resolve the taxi crisis through the YouTube channel 'Won Hee-ryong TV.' Photo by Won Hee-ryong TV capture

[Asia Economy Intern Reporter Kim Gun-chan] Won Hee-ryong, Minister of Land, Infrastructure and Transport (MOLIT), proposed measures to resolve the late-night taxi crisis (10 PM to 2 AM).

On the 31st, Minister Won suggested measures such as lifting the personal taxi rotation system and introducing a dynamic fare system through his YouTube channel 'Won Hee-ryong TV' to address the taxi shortage.

Minister Won pointed to the personal taxi rotation system as the cause of the decrease in taxi supply. Seoul City operates personal taxis on a three-shift rotation system (Ga, Na, Da) to prevent driver fatigue and regulate supply and demand. Minister Won said, "Personal taxis operating in Seoul are required to rest one day out of every three, which is reducing the supply of personal taxis."

◆ Rest during the day and operate at night... lifting the personal taxi rotation system

As a measure to increase taxi supply, he proposed lifting the personal taxi rotation system. Minister Won explained, "There should be 2.5 times more taxi drivers than corporate taxis for smooth dispatch," adding, "Currently, the number of drivers is 30% less than the number of taxis." He also noted, "During the COVID-19 outbreak, many taxi drivers moved to other sectors such as delivery or courier services," and said, "It will inevitably take time to recruit taxi drivers again, so we must first lift the rotation restrictions." He argued that by lifting the rotation system, taxi drivers could rest during the day and operate at night, increasing the number of personal taxis beyond the current level.

Recent effects have been observed in local governments that lifted the taxi rotation system. According to data analyzed by the Ministry of Land, Infrastructure and Transport on the Taxi Operation Information System (TIMS) on the 28th, Chuncheon City in Gangwon Province completely lifted the taxi rotation system on April 1, resulting in a 31.3% increase in personal taxis operating late at night. Ulsan, which lifted the late-night rotation system last month, also saw a 12.4% increase.

The Ministry plans to consult with local governments to lift the personal taxi rotation system, which is managed and supervised by local authorities. Minister Won said, "I recently spoke with Incheon City, which showed a very proactive attitude," and added, "We plan to actively persuade and request Gyeonggi Province and Seoul City as well."

Citizens are gathering around empty taxis near Gangnam Station in Seoul.
[Image source=Yonhap News]

◆ "Create incentives for drivers to operate" Introducing a dynamic fare system

Minister Won also emphasized the need to introduce a 'dynamic fare system' as a solution to the late-night taxi crisis. The dynamic fare system adjusts taxi fares in real-time based on demand and supply at the time of the call. Minister Won said, "We need to create incentives for drivers to come out and operate," and added, "We should consider raising the call fee and introducing a dynamic fare system." It is known that a plan is being reviewed to allow fares to increase by 25 to 100%. Currently, large and premium taxis on taxi-hailing platforms implement a dynamic fare system that can raise fares up to four times.

Recently, MOLIT also began serious discussions on introducing the dynamic fare system. In a presidential briefing on the 18th of last month, MOLIT announced, "To resolve the worsening late-night taxi shortage, we plan to introduce a platform taxi dynamic fare system after gathering expert and industry opinions."

◆ Considering new mobility options such as ride-sharing platforms

Minister Won indicated that if the taxi crisis is not resolved, measures to activate ride-sharing platforms like the past 'Tada Basic' will be considered. He said, "We will use data to identify which areas and times have the greatest taxi shortages and implement policies accordingly." He added, "If supply cannot be met even with forced dispatch, we will have no choice but to introduce service types other than taxis," and stated, "We are also considering introducing new mobility forms such as demand-responsive public transportation."

On the 27th, Minister Won held a meeting with the Corporate Taxi Association, Personal Taxi Association, Seoul Corporate Taxi Union, Seoul Personal Taxi Union, Kakao Mobility, and Wooty, among others in the taxi and platform industries, to discuss ways to expand taxi supply during late-night hours. Early this month, a forum involving local governments, platform industries, and consumers is planned to gather opinions.

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