April 27, 2024

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[THE INVESTOR] Kakao Mobility announced on Jan. 3 that it has signed a partnership deal with Tago Solutions, which industry sources said could resolve its recent tensions with taxi operators.

The subsidiary of Korea’s top mobile messenger operator and Tago Solutions have decided to cooperate to improve services and profitability of the taxi industry.

Tago Solutions, a business franchise participated by 50 taxi companies, was launched by CEO Oh Kwang-won to provide WayGo, a rejection-free call taxi service, and WayLady, a female-only cab service.

Its services will be available on the Kakao T app while Tago Solutions is expected to take charge of training the drivers. 

 

Kakao Mobility CEO Jung Joo-hwan (left) and Tago Solutions CEO Oh Kwang-won shake hands after signing a partnership agreement on Jan. 3. Kakao Mobility

“Through a partnership with Kakao Mobility, which has the best technologies and mobility know-how, we will provide new service experience and a stable working environment for taxi drivers,” said Oh.

Tago Solution’s services, aimed at meeting the growing demands of customers, were approved by the Seoul Metropolitan Government on Dec. 6.

The deal came as the conflict with taxi companies intensified amid Kakao Mobility’s plan to launch a carpool service. The company delayed the launch twice as taxi unions strongly opposed it. A 57-year-old taxi driver set himself on fire to protest the new service on Dec. 11. Tens of thousands of taxi drivers in the country have taken to the streets saying that it threatens their livelihood.

“In partnership with Tago Solutions we hope to provide high-quality taxi services that will bring about changes and growth in the industry,” said Kakao Mobility CEO Jung Joo-hwan.

“We will continue to create a business model that can realize the mutual benefits of information communications technology and taxi operators along with innovation.”

By Park Ga-young (gypark@heraldcorp.com)