A passenger boards an Onda Taxi./Courtesy of Yonhap News

As controversies over "platform abuse of power," including fees and call blocking by Kakao Mobility and Uber Taxi, continue, Tmoney Co.'s taxi-hailing service Onda Taxi is rapidly growing its presence by quickly increasing users, especially in regional areas. By lowering the fee burden, it is attracting both drivers and passengers and cracking the market structure.

Onda Taxi is a service created as Tmoney Co., which has run a transit card–based business, expanded into a structure consolidating taxis and public transportation. It began in 2015 as "Tmoney onda" and is now operated as part of the integrated mobility platform "Tmoney GO."

According to Tmoney Co. on the 6th, as of last month the cumulative number of Tmoney GO Onda Taxi members totaled 7.95 million. That figure has roughly doubled in about 1 year and 4 months from 4.24 million in Nov. 2024. For the Tmoney GO app overall, it recorded a cumulative 13 million subscribers last year, securing the No. 2 position among mobility platforms after Kakao T.

Actual usage indicators are also showing steady growth. According to Mobile Index, an app analytics platform, Tmoney GO's monthly active users (MAU) in Mar. of this year were 3,774,134, and after expanding from around 2.5 million in early 2023, it has maintained the 3 million to 4 million range. While it falls short of Kakao T in absolute scale, the user base itself is seen as firmly established.

This growth is set against controversies and conflicts surrounding abuse of power by taxi-hailing platforms. Uber Taxi has decided to introduce a system starting in June that imposes up to an 8% fee based on trip distance, drawing backlash from drivers. The industry is criticizing it as a unilateral notice without prior agreement, and dissatisfaction is spreading among field drivers. Kakao Mobility, which charges about a 2.8% brokerage fee for affiliated taxis, is also not free from allegations of abusing market dominance. Based on a roughly 95% share of the taxi-hailing market, controversies over "platform abuse of power," such as call blocking, continue.

As distrust in existing platforms grows, Onda Taxi is drawing users with a contrasting strategy. It charges passengers no hailing fees at all and offers mileage accrual and various discounts, while applying a 0% platform brokerage fee for drivers, effectively eliminating the burden. The only expense drivers pay is the standard card company fee incurred for card payments (about 1%–2%).

Its competitiveness stands out particularly in driver acceptance rates and dispatch speed. With no fee burden, drivers are actively accepting calls, and an artificial intelligence (AI)–based dispatch system quickly consolidates nearby vehicles, boosting perceived speed. On the ground, some say it is similar to or faster than existing platforms.

A regional expansion strategy also proved effective. Onda Taxi has increased its share by adopting an integrated call method that partners with local call taxis in regional cities such as Changwon, Chuncheon, Wonju and Seosan, as well as the greater Seoul area. Unlike existing platforms that grew centered on the capital region, building a foothold first in regional areas is cited as a differentiator. Onda Taxi's fleet size is also growing rapidly. According to Tmoney Co., Onda Taxi has about 78,000 registered vehicles nationwide, with about 39,000 in Seoul.

A Tmoney Co. official said, "As taxi services expanded and usage frequency increased, it led to overall growth in Tmoney app users," adding, "Expansion into other services such as express and intercity transportation also played a supporting role in bringing in users." The official added, "Aiming for a structure of joint growth with the regional taxi industry and actively reflecting drivers' opinions also led to a positive response."

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