Premium Taxi Riding the Taxi Crisis, 100,000 Won for 20 Minutes "Exorbitant"

Late-Night Taxi Shortage Worsens After Social Distancing Lifted
Premium Taxi Usage Increases Nationwide in Seoul, Cheonan, and More
"Allow Similar Transport Operators"... Need to Increase Supply

[Asia Economy reporters Jang Sehee and Oh Gyumin]#Office worker Gwang (49, pseudonym) finished a company dinner near his office in Mapo-gu on the 1st and went out to catch a taxi at midnight. After struggling with taxi platforms for 30 minutes, he failed to call a regular taxi. Eventually, he called the most expensive premium taxi, and it took 23 minutes to get home to Jamsil, Songpa-gu. The fare was 98,600 KRW. Gwang said, "I knew about the late-night taxi crisis for a while," but added, "Seeing the black taxi fare more than three times the usual price made me realize how 'exorbitant' it really is," echoing what others had said. Office worker Lee Saebit (36, pseudonym) also said, "I paid 70,000 KRW to go from Mapo to Hyehwa after midnight," adding, "They say the number of late-night taxis has increased, but there were no regular taxis going to my home." Kim Jungsu (30, pseudonym) complained, "When I go home late at night, I turn on three apps?Kakao, IM Mobile, and Tada?to call a taxi, but I rarely succeed in getting a regular taxi."

◆Taxi calls surge... late-night taxi war continues= Since the effective end of social distancing, the late-night taxi crisis has not been resolved. Government measures have been ineffective. Citizens have no choice but to use premium taxis that cost two to three times more, leading to complaints about the financial burden. The late-night taxi crisis is understood as a result of taxi supply failing to meet the increased demand (more users), combined with some taxis’ preference for daytime operation and selective passenger acceptance. According to Kakao Mobility, from April 4 to 24?the period after the full lifting of social distancing?the average daily increase in taxi calls nationwide during the late-night peak hours (10 p.m. to 2 a.m.) was 34%, and 28% in Seoul. This is 27 and 12 percentage points higher, respectively, compared to the morning rush hours (7 a.m. to 10 a.m.). Notably, the number of corporate taxi drivers during late-night peak hours showed a marked decline. During the same period, the number of corporate taxi drivers nationwide and in Seoul during late-night peak hours decreased by 2.9% and 2.2%, respectively. Kakao Mobility analyzed that "the preference of individual taxi drivers for daytime shifts has intensified, making this phenomenon more pronounced."

◆Ministry of Land considers ‘dynamic pricing and lifting restrictions on individual taxis’= As criticism of the ‘late-night taxi crisis’ grows, the government is preparing measures to activate taxi supply. The Ministry of Land, Infrastructure and Transport announced in a presidential briefing plans including ▲introduction of a night-time dynamic fare system ▲lifting restrictions on individual taxis ▲expansion of ride-sharing services. Among these, the dynamic pricing system would allow platform taxis to increase fares by 25?100% from 10 p.m. to 2 a.m. Currently, Kakao Vent and Black taxis operate with multipliers ranging from 0.7 to 4.0 times. The government also plans to revise the system so that taxi drivers receive appropriate income. Minister Won Heeryong of the Ministry of Land said, "We will remove regulatory barriers that block or delay those who want to work as taxi drivers."

◆"Allow similar transport operators"... need to increase supply= Experts point to expanding supply as the fundamental solution to the taxi crisis. Professor Sung Taeyoon of Yonsei University’s Department of Economics said, "We need to consider allowing similar types of transport operators," adding, "The taxi crisis continues because the supply capable of providing mobility services is insufficient." He also noted, "While the introduction of dynamic pricing may slightly increase supply, it will not be enough." Professor Lee Eunhee of Inha University’s Department of Consumer Studies said, "Adjusting prices to increase supply may not clearly match the demand," and "Elderly individual taxi operators may want benefits other than price." She added, "Considering the public nature of public transportation, it is necessary to adjust some prices but also provide additional benefits to encourage actual late-night operation."

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