April 25, 2024

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[THE INVESTOR] US ride-hailing service provider Uber said on April 5 that it is considering launching its restaurant delivery service UberEats in Korea as it seeks to expand its business here.

“We are still reviewing whether UberEats will be introduced in Korea,” Priscilla Baek, Uber’s policy lead for Asia, told The Investor at the Seoul Motor Show. 

“But at the moment, we haven’t decided on the exact launch date.”

 

UberEats

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According to industry sources, Uber is prepping to launch its on-demand delivery app service in Seoul by partnering with premier restaurants.

In December last year, the Korean unit also posted new job openings in Seoul on its website, mostly senior roles for its special project, describing it as “Uber’s new product group,” without giving details.

Baek added UberEats is already expanding fast in Asia, including Japan and Singapore, and the firm is trying to bolster its operations in Korea by introducing new services focused on its ride-sharing platform.

UberEats’ planned entry is expected to heat up competition in the nation’s huge food delivery market that is crowded with local delivery apps such as Yogiyo, FoodFly and Baedal Minjok, as well as restaurants that offer free in-house delivery services.

Uber, valued at nearly US$70 billion, operates in over 80 countries and nearly 600 cities around the world. But it hasn’t had much luck in Korea, having faced regulatory hurdles.

The firm entered the country in 2013 with its car-sharing service UberX. But two years later it as to halt operations, as it met with stiff resistance from taxi drivers and the Seoul City government. Further, South Korean prosecutors in March slapped a 10 million won (US$8,863) fine on it for violating local transportation laws.

Last year, Uber made a comeback by launching UberBlack, a premium taxi-hailing service, for specific areas in Seoul.

With much higher fare than regular taxis in the city, Uber has had a rough ride so far in the country that is dominated by KakaoTaxi, a taxi-hailing app launched by tech giant Kakao in partnership with local taxi drivers during Uber’s hiatus.

By Ahn Sung-mi (sahn@heraldcorp.com)