"No Longer Just a Taxi App: Platforms Expanding into Physical AI"

Kakao Mobility Launches "Gangnam Late-Night Seoul Autonomous Vehicle" Service
Platform Technology Also Integrated into Robotis Robots

Domestic and international mobility platform companies are accelerating their expansion into the physical artificial intelligence (AI) sector, including autonomous driving and robotics. This move is interpreted as an effort to find new sources of revenuedue to the tightening of regulations on mobility intermediary services.

Starting March 16, Kakao Mobility launched its autonomous taxi service, "Gangnam Late-Night Seoul Autonomous Vehicle," in the Gangnam area of Seoul. The Seoul Autonomous Vehicle operates based on Kakao Mobility’s proprietary autonomous driving technology. The company has implemented core autonomous driving technologies, including an AI data pipeline that trains and verifies autonomous driving AI using data, in addition to proprietary hardware design and AI-enhanced perception and decision-making systems.

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The Seoul Autonomous Vehicle is operated with two vehicles during weekday late-night hours (10 p.m. to 5 a.m. the following day) within the Gangnam-gu autonomous driving pilot zone. Users can call the Seoul Autonomous Vehicle for free through the Kakao T app. However, under Seoul City’s autonomous transportation service policy, the service is expected to transition to a paid model in April.

Kakao Mobility is not only pursuing autonomous driving but also entering the physical AI solutions business, such as robot platforms. In 2024, the company signed a business agreement with the domestic robotics firm Robotis and has applied robot delivery services in hotels. Kakao Mobility’s platform technology is built into Robotis robots for this service.

The average daily robot operation rate has increased approximately eightfold compared to the initial phase, and as the number of delivery failures has decreased, the delivery success rate has reached 100%. At one hotel, after combining the robot platform with a QR-based ordering system, room service sales reportedly tripled.

Kakao Mobility’s focus on autonomous driving and robotics is aimed at transforming itself from a traditional mobility platform business into a physical AI technology company.

As more countries commercialize autonomous vehicles, the growth prospects for mobility intermediary services have dimmed. Moreover, strengthening efforts in autonomous driving and physical AI is a global trend. Uber, the world’s largest mobility platform, is currently collaborating in the United States with companies such as Waymo (Google), Zoox (Amazon), and Motional (Hyundai) to allow users to hail autonomous vehicles through the Uber app. In its food delivery service, Uber Eats, delivery robots and drones are also being tested. Last month, Uber announced the launch of its "Uber Autonomous Solutions" division, which will offer packages to autonomous vehicle manufacturers that include driving data, in-car interfaces, real-time monitoring, remote support, dedicated insurance, and financial services.

Government regulations on mobility platform intermediary businesses have also influenced Kakao Mobility’s shift in business strategy. On March 12, Kakao Mobility CEO Ryu Keungseon stated in an email to employees that, "We will reinvent ourselves as a technology company leading the era of physical AI, responsible for all aspects of everyday mobility."

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