Uber Expands Presence in South Korea to Challenge Kakao Mobility

Uber Technologies has announced a strategic plan to further establish its presence in South Korea, directly taking on market leader Kakao Mobility, the ride-hailing unit majority-owned by South Korean tech giant Kakao. This decision comes after witnessing significant growth in the country.

Uber CEO Dara Khosrowshahi revealed the expansion plans at a press conference in Seoul and also initiated a campaign to increase the number of drivers for the company in South Korea.

The ride-hailing industry in Korea is currently dominated by Kakao Taxi, Kakao Mobility's consumer service, with over 23 million registered users and a 98% market share, according to Statista. Uber intends to enhance its partnerships with Korean car technology companies, following a similar strategy implemented in other markets.

In recent developments, Uber has collaborated with Cruise, General Motors's self-driving subsidiary, to introduce robotaxis to its platform by 2025. Uber has also made a strategic investment in Wayve, a U.K.-based startup focused on autonomous driving technology. Additionally, Uber collaborates with Hyundai in markets like Europe.

The increasing presence of Uber in South Korea adds to the competitive landscape of the country's ride-hailing market, where local players have faced regulatory scrutiny. While Kakao Mobility was fined for algorithm manipulation in favor of its own taxi franchise, Uber has had its own challenges in the market.

Uber first faced resistance from taxi drivers in South Korea a decade ago, leading to protests and eventual regulatory action. Despite setbacks, Uber re-entered the market in collaboration with TMAP Mobility, a unit of SK Telecom, and has seen significant growth in passenger numbers and usage since then.