Model taxis, once called the "VIP" of the taxi industry, are losing ground. They were once seen as a symbol of premium transportation thanks to roomy vehicles and skilled driver service, but their footing is shrinking as platform-based premium black (high-end taxi) vehicles rapidly increase. Some say they are pricier than regular taxis but fall short of delivering as clear a premium experience as high-end taxis.
According to the Seoul city government on the 27th, as of the end of January this year, only 573 of Seoul's 71,615 registered taxis were model taxis. That is 0.8% of the total. Seoul's model taxis fell from 748 in 2023 and 707 in 2024 to 573 this year. In contrast, high-end taxis rose from 2,502 to 2,599 over the same period and to 3,028 this year. Their share of all taxis climbed to 4.2%.
◇ Fares are higher than regular taxis… premium lags behind high-end taxis
Model taxis have promoted skilled drivers and stable service in return for higher fares than regular midsize taxis. According to the Ministry of Land, Infrastructure and Transport, vehicles with an engine displacement of 1,900cc or higher and seating for five or fewer passengers can operate as model taxis. This is why near-full-size sedans such as Hyundai Motor Grandeur and Kia K8 are widely used as model taxis.
In Seoul, the base fare for model taxis is 7,000 won for 3 km. That is about 1.5 times higher than the 4,800 won base fare for regular midsize taxis. After that, regular midsize taxis add 100 won per 131 meters or 30 seconds, while model taxis add 200 won per 151 meters or 36 seconds.
The biggest difference between model taxis and regular taxis is driver qualifications. A record such as operating a personal taxi for more than five years without an accident is required to drive a model taxi. The taxi industry said, "The competitiveness of model taxis ultimately lies in driver proficiency and a sense of stability."
But the standard for what consumers feel is "premium" has changed. That shift began in Nov. 2015 with the introduction of high-end taxis. Like model taxis, high-end taxis offer higher-grade vehicles and services than regular taxis, but the vehicle standard is higher. Vehicles with an engine displacement of 2,800cc or higher must be used. Currently, luxury sedans and large vehicles such as the Genesis G90, Carnival Limousine and Staria Limousine are mainly used.
How they are used also differs. Model taxis can be hailed on the street, but high-end taxis operate on a call and reservation basis. Depending on the platform, the base distance is often absent or short at around 0.75 km, and the subsequent distance- and time-based fares are generally higher than for model taxis. Even so, from the user's perspective—considering vehicle size, interior convenience and reservation systems—high-end taxis are often perceived as closer to a "premium" service.
Office worker A, who said frequent overseas business trips led to regular use of model taxis, said, "I often took model taxis from the airport, but these days some feel like regular midsize sedans and the trunk seems smaller than in large high-end taxis," adding, "Service also varies by driver, so since recently I have been using high-end taxis like Kakao Venti or Tada Plus."
Online reactions are mixed. Some say, "Model taxis feel safe because driver service is stable," while many others say, "High-end taxis you call by app are more convenient," "Vehicle differences are big," and "Model taxis do not feel much different from regular taxis."
◇ Only 573 model taxis in Seoul… "Riders refuse after seeing the car"
With the number of model taxis in Seoul down to around 500, the sense of crisis on the ground is significant. A taxi driver in his 60s surnamed Lee, who said the model taxi he operated was switched to a regular midsize taxi two years ago, said, "When I drove a model taxi, more than 10 customers a day refused to get in after seeing the car," adding, "After going through that repeatedly, I lost the motivation to drive." The person added, "Around me, there are also drivers quitting model taxis and returning to regular taxis."
The challenge facing model taxis lies in a "middle ground" of price and service. Fares are higher than regular midsize taxis, but they do not offer clear differentiation in vehicle grade or reservation convenience like high-end taxis. In the past, the very name "model" conveyed trust and a premium image, but now consumers compare vehicle grade, app-calling convenience and reservation experience together. It has become difficult to retain users based on the strength of skilled drivers alone.
◇ Maybachs appear… model taxis turn upscale to survive
The model taxi sector is also moving to change. Recently, some are expanding vehicle types to include not only large sedans like the K9 and Genesis G90 but also sport utility vehicles (SUVs). Some are even deploying high-end imported cars.
On online communities, a review of a ride in a Mercedes-Benz Maybach S580 model taxi, known to cost around 300 million won, drew attention. Sightings continue of model taxis using imported cars such as the BMW iX3 and Toyota Crown.
They are also strengthening platform linkage. Some model taxis are tied not only to general reservation systems but also to the automatic dispatch service for model taxis via Kakao Mobility's Kakao T app. It is an attempt to shed the image of a taxi you happen to hail on the street and move into the call market.
A taxi industry official said, "In the past, the name model taxi alone conveyed trust and a premium image, but now consumers compare everything from vehicles to app convenience and reservation experience," adding, "If only the perception of being simply an expensive taxi remains, it will be hard to stay competitive."