KakaoT Dispatch Algorithm Claims No Discrimination... So Why Does Boarding Difficulty Persist?

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] The Mobility Transparency Committee has concluded that there was no "call stacking" in the KakaoT taxi dispatch system. Ultimately, the analysis that the late-night ride shortage is due not to discriminatory algorithms by the platform company but to a shortage of drivers has gained traction. To resolve this, opinions suggest that the market itself must be transformed through taxi fare increases and platform activation.

According to the industry on the 7th, the committee concluded at a press briefing held the day before that there is no variable distinguishing between affiliated taxis and regular taxis in the KakaoT taxi dispatch process. This conclusion is based on an analysis of 1.7 billion mid-sized taxi call data that occurred in April.

In particular, regular taxis received about 100 "call cards" during waiting times, which is much higher than the 12 received by affiliated drivers. Regular drivers, who make up 77% of all KakaoT platform taxi drivers, received 99% of the calls. The committee explained, "KakaoT was providing sufficient dispatch opportunities to all taxi drivers."

However, only 68% of the calls received by regular taxi drivers actually resulted in "completed trips," indicating that refusals were more common. This is analyzed to be because regular taxis preferred medium- to long-distance calls over short-distance ones.

For regular taxis, calls were received at a ratio of 54% short-distance, 26% medium-distance, and 20% long-distance, while actual trip ratios were 50% short-distance, 27% medium-distance, and 22% long-distance. In contrast, affiliated taxis received calls at 57% short-distance, 25% medium-distance, and 18% long-distance, with actual trip ratios of 58% short-distance, 25% medium-distance, and 17% long-distance, showing little difference.

These investigation results contradict the "call stacking" suspicions raised by the Seoul Metropolitan Government and the taxi industry. Previously, Seoul conducted a "platform taxi status survey" targeting 841 Kakao taxis from October to November last year, alleging that KakaoT exposed passengers' destinations to drivers, encouraging "selective passenger picking," and that even when calling regular taxis, 4 out of 10 dispatched taxis were affiliated, raising suspicions of "call stacking."

Ultimately, the analysis suggests that more taxi drivers are needed to offset the phenomenon of taxis not being available under the current KakaoT system. The taxi industry has voiced that, due to the inevitable revenue impact from the decrease in passengers caused by COVID-19, raising the base fare is necessary to resolve the driver shortage.

Dr. Ahn Kijeong of the Seoul Institute's Transportation Systems Research Division analyzed, "Since 2010, the number of corporate taxi drivers has steadily decreased, and COVID-19 dealt a direct blow. Due to the ‘quasi-sabatoge system’ where drivers have to cover the shortfall with personal money, the working conditions of corporate taxi workers worsened," adding, "Ultimately, taxi drivers quit driving while earning less than minimum wage."

Currently, Seoul City is also pushing for a taxi fare increase to resolve the late-night taxi shortage. The plan is to raise the mid-sized taxi fare from the current 3,800 won to 4,800 won.

The roles of authorities and platforms are also emphasized. Professor Kim Jinyu of Kyonggi University's Department of Urban Transportation Engineering said, "We need to improve taxi driver working conditions by providing subsidies and eliminate ride shortages by expanding taxi platforms through deregulation."

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