Uber Undeterred by Kakao Competition, Vows to Deepen Its Roots in South Korea

Uber Undeterred by Kakao Competition, Vows to Deepen Its Roots in South KoreaDespite fierce competition from South Korean tech giant Kakao, Uber CEO Dara Khosrowshahi has affirmed the company's commitment to expanding its presence in the Korean market. Khosrowshahi highlighted that Uber's growth in Korea has outpaced the market average, and he expressed confidence in securing a larger market share in the future

Uber Undeterred by Kakao Competition, Vows to Deepen Its Roots in South Korea

Despite fierce competition from South Korean tech giant Kakao, Uber CEO Dara Khosrowshahi has affirmed the company's commitment to expanding its presence in the Korean market. Khosrowshahi highlighted that Uber's growth in Korea has outpaced the market average, and he expressed confidence in securing a larger market share in the future.

Kakao is estimated to hold over 90% of the taxi-hailing market share, based on app usage. However, Uber is not backing down from the Korean market. Khosrowshahi stated that Uber will continue to attract more taxi drivers to its platform, driving further growth.

Uber's journey in South Korea has not been without its challenges. The company first entered the market in 2013 but was forced to withdraw due to local regulations limiting ride-hailing services to companies with taxi licenses. It wasn't until 2021 that Uber re-entered the market through a joint venture with South Korea's second-largest conglomerate, SK Group, forming UT. In March of this year, UT's taxi-hailing service was rebranded as "Uber Taxi."

Khosrowshahi revealed that around 20% of Korean taxi drivers have joined the Uber Taxi platform. In the first half of 2024, passenger numbers grew nearly 80% year-on-year, with international traveler usage more than doubling since the rebranding.

Uber's return to the South Korean market is undoubtedly injecting new competition into the country's taxi-hailing landscape. While Kakao still holds a dominant position, Uber's strong comeback provides consumers with more options and has the potential to further drive innovation and growth in the Korean taxi-hailing market.

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