Kakao Mobility, Uber Korea rev up competition with taxi subscription service

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Kakao Mobility, Uber Korea rev up competition with taxi subscription service

Published: 27 Aug. 2025, 14:58 Updated: 27 Aug. 2025, 18:30

Audio report: written by reporters, read by AI

Taxis waiting for customers are parked at a street in Andong, North Gyeongsang, on March 27. [YONHAP]

From playlists to parcels, everything has a subscription these days — now even your taxi ride wants in, with Kakao Mobility and Uber Taxi Korea rolling out rival monthly plans.

While Uber is a global mobility giant, it has struggled to expand its footprint in Korea, where Kakao Mobility dominates. The company hopes the new service will help it gain ground.

In a press conference in Seoul’s Lotte Hotel on Tuesday, Uber Taxi announced that it will launch its monthly membership service, “Uber One,” in early September. For a monthly fee of 4,900 won ($3.50), subscribers can earn 5 to 10 percent of their fare back as credits to be used on their next ride.

Annual subscribers can pay 49,000 won — about 17 percent cheaper than the monthly plan. Credit of 10 percent will be given for Uber-affiliated rides such as Uber Taxi, the 3,000 won “Speed Call” priority dispatch option and premium “Uber Black” vehicles. For general, deluxe and Uber Green EV taxis, a 5 percent credit will be offered. Members will also be given priority access to higher-rated drivers.

There are no restrictions on signing up that may affect foreign users according to Uber Taxi Korea.

Kakao Mobility, the undisputed leader in Korea’s taxi-hailing market, officially launched its subscription service, “Kakao T Members,” on Monday. Unlike Uber’s single pricing plan, Kakao offers two packages: “Mobility Plus” for taxi users at 4,900 won per month and “My Car Plus” for car owners at 5,900 won.

Mobility Plus subscribers receive three coupons for free rides from Blue Partners, which are affiliated taxis, and Booster, priority dispatch during late hours, as well as reward points worth up to 5 percent for using services such as Bike and Pet Taxi and 3 percent for premium Venti and Black rides.

Song Jin-woo, head of Uber Taxi Korea, speaks during a press conference in Seoul’s Lotte Hotel announcing the launch of ″Uber One″ on Aug. 26. [YONHAP]

My Car Plus members get up to 10,000 won in monthly parking discounts, special night and weekend parking rates and up to 3,000 Kakao Navi points.

Foreigners using Kakao Mobility can also sign up for these subscription plans as long as they have a verified Kakao account and it is connected to an authorized automatic payment option such as a credit or debit card.

As a latecomer to the market, Uber is seeking to attract frequent taxi users through its subscription service to expand its market share. As of last month, Uber’s monthly active users in Korea stood at 690,000, just 5 percent of Kakao Mobility’s 14.14 million, according to Mobile Index.

While Kakao's subscription model aims to boost profitability across its diverse services beyond taxis, Uber is focusing on gaining taxi ridership.

“While Kakao T offers a 3 percent reward, Uber offers up to 10 percent,” said Song Jin-woo, head of Uber Taxi Korea. “For those who spend more than 50,000 won a month on taxis, Uber One is more beneficial. We will also provide differentiated service by prioritizing higher-rated drivers for our members.”

A Kakao Mobility affiliated taxi is seen at a taxi stop in Jung District, central Seoul, on May 28. [NEWS1]

Both companies claim that the services are meant to ease the financial burden on consumers. But critics warn that prioritizing subscribers could degrade service quality for nonmembers, effectively amounting to a fare hike.

“Since taxi numbers are limited, if premium service benefits are given only to paying members, nonmembers may be forced to join,” said Jung Ji-yeon, secretary general of the Consumers Union of Korea.

Kakao Mobility previously clashed with drivers in 2021 when it introduced “Pro Membership,” charging drivers 99,000 won a month in exchange for priority calls. While the dynamics differ from the food delivery market, the Korea National Council of Consumer Organizations similarly warned in July of last year — when delivery apps rolled out subscriptions — that such models risk driving up consumer prices.

Both Uber and Kakao Mobility counter that their services will create a beneficial cycle by generating more demand to the advantage of riders, drivers and platforms alike.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY YU SUNG-KUK [[email protected]]