The operator of the mobility platform "Tada," VC (Tada), filed a lawsuit against Kakao Mobility for damages caused by blocking taxi drivers' calls.
According to the information and communication technology (IT) industry on the 17th, Tada filed a damages lawsuit against Kakao Mobility at the Suwon District Court in Seongnam last month.
Tada claimed that Kakao Mobility limited consumer choice by directing calls to its affiliated taxis and blocking calls from competitors. It also added that this hindered innovation in the mobility market.
Tada asserted that, particularly due to Kakao Mobility's actions, the sales of the mid-sized taxi "Tada Light" had decreased, resulting in severe damage such as the loss of taxi drivers and customers, effectively ending its services.
The Fair Trade Commission confirmed last December a penalty surcharge of 15.1 billion won against Kakao Mobility for requiring competing affiliated taxi operators to sign partnership contracts and blocking calls from its affiliated taxi drivers if they refused.
Kakao Mobility stated, "We reflected the acceptance rate in the dispatch algorithm to reduce the ride refusals that occur when taxi drivers choose good calls," and noted, "This was a measure to enhance user benefits."
It continued, "We initiated partnership contracts with other affiliated taxis to prevent service quality degradation due to unilateral call cancellations by drivers and brand confusion."
Since last year, the two companies have been embroiled in a tussle over wooing taxi drivers. Tada claimed that Kakao Mobility had induced Tada drivers to switch to its affiliated taxis through phone calls and text messages. Kakao Mobility countered that it provided information only to Tada drivers who voluntarily applied for job counseling.