Uber Technologies Inc.‘s CEO, Dara Khosrowshahi, reaffirmed the company’s commitment to expanding its presence in South Korea, despite facing stiff competition from local tech giant Kakao. Speaking to reporters in Seoul on Friday, Khosrowshahi emphasized Uber’s potential to attract more taxi drivers by highlighting the increased earnings and job opportunities available through the platform. He stated, “The fact is that a taxi driver who uses the Uber app will make more money, will be more busy.” He further noted that Uber’s growth rate in South Korea is significantly outpacing the market, expressing confidence that the company’s market share will continue to expand.
Currently, Kakao dominates the South Korean taxi-hailing market with a market share exceeding 90%, according to app usage data. Uber initially entered South Korea in 2013 but withdrew due to regulations restricting ride services to companies with taxi licenses. In 2021, Uber re-entered the market by establishing a joint venture with SK Group, South Korea’s second-largest conglomerate, under the brand UT. In March of this year, UT’s taxi-hailing service was rebranded as Uber Taxi, marking a renewed effort to capture a share of the competitive market.
Khosrowshahi disclosed that approximately 20% of South Korean taxi drivers are now using the Uber Taxi platform. Additionally, the number of passengers utilizing Uber’s services grew nearly 80% year-on-year in the first half of 2024. This surge in growth also included a more than doubling in usage by international travelers to South Korea since the rebranding initiative.
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