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| Kakao, operator of Korea's most-used mobile messenger, launches a mobile substitute driving call-out service "Kakao Driver." / Courtesy of Kakao |
By Yoon Sung-won
Kakao launched Kakao Driver, its driver-for-hire service, in
Korea, Tuesday.
The company pledged to provide a superior driver-for-hire service and improve the working conditions of drivers. However, the new service faces opposition from existing competitors.
"Based on its innovative mobile service, Kakao Driver will offer increased value to consumers and more reasonable working conditions for its workers," said Kakao Chief Business Officer John Jung.
He said the service is in line with the company's strategy to connect a greater range of aspects of people's lives through its mobile platform, enhancing user benefits and tackling problems of existing industries such as a supply-and-demand imbalance and complicated distribution structure.
Drivers working for private agencies not only pay 20 to 40 percent of their earnings in commissions but also more than 1 million won on insurance premiums per year.
Kakao said it set a nationwide commission rate of 20 percent. It also said it will provide full insurance coverage for all registered drivers.
The company said more than 50,000 drivers have registered for the service, which is over 40 percent the number of legitimate drivers-for-hire here.
Other drivers and agencies have strongly opposed Kakao's entrance to the industry, blaming the move as a "reckless diversification of a conglomerate's business portfolio" based on its market dominance.
Private users and drivers, however, said the Kakao Driver service is expected to rapidly penetrate users' lives.
"Regardless of the turf war between Kakao and its competitors, the new service will draw popularity from ordinary users and private drivers-for-hire like myself," a private taxi driver in Seoul said. "As we have already seen from the explosive popularity of Kakao Taxi here, this is a new trend that cannot be stopped."
Despite opposition from some call taxi companies, Kakao's mobile call taxi service Kakao Taxi has drawn a favorable market response, recording more than 100 million cumulative calls in the year since its release.
Through the Kakao Driver mobile application, users can request and pay for a substitute driver. Users can get a fee estimate through the app by setting the starting location and destination. Drivers who are registered for the service can also check and accept requests also through the mobile app. The app is available at Google Play and Apple Appstore.
Kakao said both users and drivers can check each other's location and the app is automatically connected to the company's mobile navigation app, "Kakao Navi."
Kakao has developed a metering app to calculate the fee based on the distance and time of the service. The basic rate is set at 15,000 won. Users can pay fares automatically through the company's integrated mobile payment service Kakao Pay.
"We have introduced the automatic payment system based on Kakao Pay to provide a more transparent service and to eliminate inconveniences caused by unnecessary quarrels between drivers and customers over fares and detours," Kakao said.
As a security measure, Kakao allows users to send messages including starting location, destination, driver information and estimated time of arrival to those registered on a friendlist through the Kakao Talk messenger.
The company has also obligated prospective drivers to pass a screening process by a professional hiring panel to register and qualify for insurance. Users can check the portrait photo and name of the driver before making the call, it said.
Kakao is expected to face more conflicts as it plans to launch more diverse online-to-offline services such as Kakao Hair Shop and Kakao Home Clean later this year.
The company pledged to provide a superior driver-for-hire service and improve the working conditions of drivers. However, the new service faces opposition from existing competitors.
"Based on its innovative mobile service, Kakao Driver will offer increased value to consumers and more reasonable working conditions for its workers," said Kakao Chief Business Officer John Jung.
He said the service is in line with the company's strategy to connect a greater range of aspects of people's lives through its mobile platform, enhancing user benefits and tackling problems of existing industries such as a supply-and-demand imbalance and complicated distribution structure.
Drivers working for private agencies not only pay 20 to 40 percent of their earnings in commissions but also more than 1 million won on insurance premiums per year.
Kakao said it set a nationwide commission rate of 20 percent. It also said it will provide full insurance coverage for all registered drivers.
The company said more than 50,000 drivers have registered for the service, which is over 40 percent the number of legitimate drivers-for-hire here.
Other drivers and agencies have strongly opposed Kakao's entrance to the industry, blaming the move as a "reckless diversification of a conglomerate's business portfolio" based on its market dominance.
Private users and drivers, however, said the Kakao Driver service is expected to rapidly penetrate users' lives.
"Regardless of the turf war between Kakao and its competitors, the new service will draw popularity from ordinary users and private drivers-for-hire like myself," a private taxi driver in Seoul said. "As we have already seen from the explosive popularity of Kakao Taxi here, this is a new trend that cannot be stopped."
Despite opposition from some call taxi companies, Kakao's mobile call taxi service Kakao Taxi has drawn a favorable market response, recording more than 100 million cumulative calls in the year since its release.
Through the Kakao Driver mobile application, users can request and pay for a substitute driver. Users can get a fee estimate through the app by setting the starting location and destination. Drivers who are registered for the service can also check and accept requests also through the mobile app. The app is available at Google Play and Apple Appstore.
Kakao said both users and drivers can check each other's location and the app is automatically connected to the company's mobile navigation app, "Kakao Navi."
Kakao has developed a metering app to calculate the fee based on the distance and time of the service. The basic rate is set at 15,000 won. Users can pay fares automatically through the company's integrated mobile payment service Kakao Pay.
"We have introduced the automatic payment system based on Kakao Pay to provide a more transparent service and to eliminate inconveniences caused by unnecessary quarrels between drivers and customers over fares and detours," Kakao said.
As a security measure, Kakao allows users to send messages including starting location, destination, driver information and estimated time of arrival to those registered on a friendlist through the Kakao Talk messenger.
The company has also obligated prospective drivers to pass a screening process by a professional hiring panel to register and qualify for insurance. Users can check the portrait photo and name of the driver before making the call, it said.
Kakao is expected to face more conflicts as it plans to launch more diverse online-to-offline services such as Kakao Hair Shop and Kakao Home Clean later this year.
