Uber taxi is gearing up to penetrate the mobility market in Korea, which is dominated by Kakao Mobility, by launching its monthly subscription service 'Uber One' early next month. It will also introduce a youth-exclusive 'Uber Teen' service for dual-income households with school-aged children.
Dominic Taylor, head of Uber Mobility in the Asia-Pacific region, noted at a press briefing held on the 26th at the Lotte Hotel in Jung-gu, Seoul, that 'Korea is one of Uber's key markets, and the number of Uber taxi trips completed (referring to the number of taxi requests to dispatch and ride) has recorded double-digit growth annually,' while revealing plans for new service launches.
'Uber One' is Uber's flagship paid membership service, which will officially debut in the Korean market next month after a beta testing period this month. The subscription fee is 4,900 won per month, the same as the subscription fee for rival Kakao Mobility's 'Kakao T Members.' If annual payment is selected, it can be used for about 49,000 won, approximately 17% lower. Members who subscribe to 'Uber One' will earn 5% to a maximum of 10% in Uber One credits each time they use Uber taxi, which can be used for their next ride. Specifically, Uber taxi franchise products (Uber taxi, speed request, Uber Black, Uber Black, general taxi XL) earn 10%, while general taxis, deluxe taxis, and green products earn 5%.
Users can also enjoy exclusive benefits, such as priority dispatch for highly-rated drivers. To celebrate the official launch of 'Uber One' in the Korean market, Uber taxi will offer a one-month free trial benefit to new users.
Song Jin-woo, head of Uber taxi, said, 'Uber One is a service that rewards frequent riders with benefits, making it particularly appealing for heavy users.' He added, 'This membership subscription service is a crucial element in customer retention and corporate growth, and I expect it to become a key product for Korean customers to use Uber taxi frequently.'
In a report published last month, Bank of America evaluated that loyalty among Uber users worldwide is increasing through 'Uber One.' Currently, there are approximately 36 million 'Uber One' members, accounting for over 40% of the company's total booking volume. The number of members has increased by 60% in a year.
In line with the increasing demand for care services due to the rise of dual-income households, the youth-exclusive service 'Uber Teen Account' will be launched on the 29th. When parents or children call a taxi through the youth-exclusive account, the highest-rated drivers will be dispatched. Song noted, 'Parents can monitor their children's journey in real-time through the Uber app, providing peace of mind,' and said that the youth-exclusive service has already been successfully operated in Canada, the United States, and Australia, and is expected to have demand in Korea, where the ratio of dual-income families is high.
Uber taxi plans to accelerate its market share expansion in Korea by launching two services in the second half of the year. Currently, Kakao Mobility holds about 95% market share in the domestic mobility market, making it difficult for latecomers like Uber taxi and Tada to break this monopoly. Earlier, Kakao Mobility announced that it will officially launch its subscription service 'Kakao T Members' on the 27th.
Song stated, 'The Korean market has a high sensitivity to dispatch quality such as fast dispatch, and we focused on improving the success rate of dispatch in the first half of the year.' He added, 'In the second half, we aim to create a turning point for a further leap in the Korean market by providing passengers with more diverse options and offering drivers new revenue-generating opportunities.'
Uber entered the Korean market in 2013 by introducing the ride-sharing service 'UberX', but withdrew from the market in 2015 due to illegal taxi controversies. In 2021, it collaborated with Tmap Mobility, a subsidiary of SK Square, to establish a joint venture called 'UT' and reattempted to enter the taxi-calling market. In March of last year, it underwent rebranding, changing its name to 'Uber taxi,' and subsequently announced in December that it would acquire all shares of UT held by Tmap Mobility.
Since rebranding, Uber taxi has introduced premium services like 'Black' and 'General Taxi XL' for passengers with a lot of luggage and has focused on strengthening brand awareness through new service launches, marketing, and promotions. This year, it is estimated that the monthly active users (MAU) of Uber taxi have been fluctuating between about 500,000 and 700,000. Although this number falls significantly short of Kakao Mobility's 12 million users, Uber taxi claims it is continuously growing. Song emphasized, 'The growth trend is unwavering, consistently moving upward, achieving top performance every month,' adding, 'Not only the number of requests but also the dispatch success rate is showing a continuous improvement trend.'
Taylor, the representative of the Asia-Pacific region, noted, 'The expression 'to Uber' has penetrated so deeply into the daily lives of people around the world that it now means to take a taxi.' He stated, 'Uber contributes significantly not only by providing freedom of movement but also in job creation, with over 1 million people generating revenue through Uber in the Asia-Pacific region,' and added, 'We will sequentially introduce services suitable for the Korean market from the variety of services that have succeeded in the global market through the second half of this year and into next year.'