The Sale of 'Tada' with Its Engine Off... What Is the Next Destination?

Failed Sale Negotiations with The Swing Following Jin Mobility
Shifting to Self-Operation... "No Plans to Withdraw Sale"

'Tada,' which was negotiating a sale with The Swing, ultimately failed to finalize the deal. Following the collapse of a merger with Jin Mobility, the operator of I’m Taxi, this latest sale attempt also fell through. Viva Republica (Toss), the largest shareholder of Tada’s operator VCNC, plans to continue operating Tada independently while seeking other potential buyers.

According to industry sources, The Swing, a personal and micro-mobility sharing service provider, and Viva Republica, which operates Toss, decided not to proceed with the purchase agreement for 60% of VCNC’s management rights shares. The acquisition price for The Swing’s stake was reported to be approximately 24 billion KRW. Based on this, the estimated value of 100% of VCNC’s shares is about 60 billion KRW.

One reason for the breakdown of the sale was reportedly the sluggish negotiations over the remaining 40% of VCNC’s shares. Tada’s second-largest shareholder, Socar, demanded The Swing’s shares and board attendance rights in exchange for the 7 billion KRW loan and interest it had extended to VCNC. However, The Swing rejected these terms, escalating the conflict. Ultimately, the two companies failed to reconcile their differences, leading to the collapse of the sale negotiations.

However, The Swing claims that the failed negotiations were due to Toss’s change of heart. A representative from The Swing stated, "We had reached an agreement with Socar on that matter," adding, "The contract fell through because of Toss’s unilateral refusal."

Another factor was the sale price. When Toss acquired 60% of Tada from Socar in 2021, the price was reportedly 60 billion KRW. The current price has dropped by more than half compared to that time. Additionally, since Toss has plans for an initial public offering (IPO) in the future, it is advantageous to increase the company’s value before selling. Industry insiders expect Toss to pursue an IPO within two years. One industry expert analyzed, "Rather than selling at a loss in a hurry, it is more likely that they plan to either hold on to the company to increase its value or sell it at a higher price."

Moreover, the recent improvement in Tada’s management situation appears to have contributed to the failed sale. VCNC recorded operating revenue of 3.8 billion KRW and an operating loss of 17.7 billion KRW in 2021, followed by operating revenue of 4.1 billion KRW and an operating loss of 26.2 billion KRW last year, indicating worsening performance. In particular, last year’s deficit reached 59.23844 billion KRW, reflecting a deteriorated financial condition. However, the company implemented a high-intensity restructuring this year. Tada recently carried out a large-scale restructuring, reducing its workforce by 50%. From the company’s perspective, fixed costs have been cut in half compared to before.

Tada’s business itself has also been improving recently. As a result of enhancing the dynamic pricing system that adjusts fares based on taxi demand and supply, the number of users has increased. Additionally, starting this month, Tada has aggressively sought to attract customers by lowering the surcharge rate of the dynamic pricing system.

Nonetheless, Toss still plans to sell if a good buyer emerges. A Viva Republica representative said, "Recently, Tada has significantly reduced costs through restructuring and improved performance due to increased customers," adding, "Internally, we are in a situation where we can take a longer-term view." However, they added, "There is no change in the plan to sell whenever a suitable buyer appears."

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