Kakao Mobility Lowers Taxi Operators' Burden... Franchise Commission Reduced to 2.8%

Complete Overhaul of Dispatch System... Pro Membership Abolished

Kakao Mobility is lowering the actual commission rate, which was around 3-5% of the affiliated taxi drivers' sales, to 2.8%. Instead of imposing an initial cost burden for joining the affiliation, it has prepared a plan to increase taxi-related advertising products so that taxi operators can earn additional income.

Kakao Mobility announced on the 13th that it has prepared a reform plan based on industry opinions gathered through meetings with the taxi industry held since last November.

On the 13th, Ryu Geung-seon, CEO of Kakao Mobility (third from the left), and taxi association officials are taking a commemorative photo.
[Photo by Kakao Mobility]

Kakao Mobility and the taxi industry agreed to launch a new affiliated taxi service that simplifies the affiliated taxi service and reduces the commission burden on operators. The ongoing affiliation fee for the new affiliated taxi service was agreed upon at 2.8%.

The new affiliation service will significantly minimize the initial cost burden for operators to join the affiliation, such as vehicle wrapping and training. At the same time, it plans to create a structure where taxi operators and workers can earn additional income by commercializing taxi exteriors as advertising products.

A plan has also been prepared for non-affiliated (general) drivers. Kakao Mobility agreed to abolish the Pro Membership, an additional optional product for non-affiliated drivers, within next year. However, to minimize inconvenience for drivers who are effectively using the Pro Membership, the company plans to discuss with the industry and set a specific abolition schedule.

Separately, the 'commission-free' policy for general taxi calls on Kakao T will remain unchanged. Non-affiliated taxi drivers can continue to use the platform for free as before.

Based on opinions from the taxi industry regarding fair dispatch, the matching algorithm will also be revised. AI recommendation-based dispatch and shortest-distance priority dispatch will be implemented concurrently when sending the first call card.

Kakao Mobility stated, "We recognize the development of the taxi industry and the enhancement of public convenience as a shared task and will continue discussions by forming a development consultative body. To resolve monopoly concerns, we will continuously strive to create a taxi platform environment where we can compete fairly with various operators and cooperate for mutual growth."

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