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The Korea Herald
검색폼

THE INVESTOR
March 28, 2024

Mobile & Internet

Tago, Kakao Mobility launch no-refusal taxi service in Korea

  • PUBLISHED :March 20, 2019 - 15:27
  • UPDATED :March 20, 2019 - 15:27
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The South Korean taxi industry has long been tainted with negative perceptions: bad interiors, reckless driving, overcharging, refusing short fares and impolite drivers.

In a bid to tackle these issues, Kakao Mobility, a mobility platform company, and Tago Solutions, a taxi franchise consisting of some 50 taxi operators, launched taxi-hailing service Waygo Blue on March 20, which the partners said would take cab services to the next level.


(From left) Oh Kwang-won, the chief of Tago Solutions, Minister of Land, Infrastructure and Transport Kim Hyeon-mi and Kakao Mobility CEO Jeong Joo-hwan. (Tago Solutions)



“The traditional taxi industry has failed to meet the needs of customers because of various issues, including fare increase that usually takes place every four or six years and the lack of technical capabilities to adopt to the fast-changing society,” Oh Kwang-won, the chief of Tago Solutions, said during the launch event of the new taxi-hailing service in Seoul.

Minister of Land, Infrastructure and Transport Kim Hyeon-mi, and Kakao Mobility CEO Jeong Joo-hwan were present at the event.

CEO Oh said the new service will address the two biggest problems in the industry: taxi drivers’ refusal to pick up short-distance customers and the poor working conditions of drivers.

With the Waygo solution, taxi hailers are automatically connected to drivers, who can choose to refuse customers only when they have valid reasons.

Drivers who keep refusing customers without proper reasons receive warnings from the company, and their contracts can be canceled after several notices.

Since a customer’s destination is not informed to Waygo drivers at first, the drivers cannot selectively pick up customers, the taxi franchise company said.

In a new wage system to be deployed by Tago, drivers can receive an average monthly salary of 2.6 million won ($2,300) after working for 52 hours -- the maximum working hours per week set by the Korean labor laws.

Conventional taxi drivers usually receive what is left after paying a certain amount of daily commissions to taxi operators, ranging from 120,000 won to 150,000 won. This commission-based system has been criticized for pressuring drivers to bend over backwards to meet their quota, and consequently leading them to refuse costumers traveling short distances.

The Waygo service will be available on Kakao Mobility’s Kakao T platform. Customers can hail a taxi by paying an extra 3,000 won on top of regular taxi fares.

For female customers, who often express concerns over late-night taxi rides and ill-mannered male drivers, Tago has also launched a female-only taxi hailing service Waygo Lady.

The taxi service for women, which dispatches trained female drivers, is currently available on Tago’s website, and will soon be featured on the Kakao T platform.

By paying some 3,000 won or more based on the distance, female customers, including those accompanied by their kids, will be able take a comfortable taxi ride in a safe fashion, according to Tago.

By Kim Young-won (wone0102@heraldcorp.com)

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