Dispatch Call Numbers Down Average 29.9% Following Kakao T Blue Launch

[Suwon Ilbo=Park Nohoon Reporter] Gyeonggi Province announced on the 24th that as a result of conducting a 'fact-finding survey on Kakao T dispatch call concentration,' a reduction in the number of dispatch calls has occurred with variations by region before and after the launch of Kakao T Blue.

Gyeonggi Province previously announced on the 8th that it would prepare a 'plan to conduct a fact-finding survey on Kakao T dispatch call concentration to understand and prepare countermeasures against abuse of monopoly power in the call service market,' and conduct the survey through September 20th.

The fact-finding survey was conducted from the 10th to 20th targeting a total of 115 individual taxi operators. The province first selected seven cities where Kakao T Blue operates (Seongnam, Guri, Uijeongbu, Yangju, Yongin, Hanam, and Namyangju) and compared the number of Kakao T dispatch calls for two months before and after the launch of operations by region. Additionally, for a total of five cities without Kakao T Blue service (Suwon, Hwaseong, Bucheon, Gwangmyeong, and Siheung), the province analyzed monthly increases and decreases in Kakao T dispatch call numbers from March to June (excluding August and September due to resurgence of COVID-19). As supplementary data, revenue figures (card transaction records) of taxis in both regions were also investigated.

According to the survey results, in the service areas, the average monthly Kakao T dispatch call numbers, which were 230 calls before the Kakao T Blue launch date, decreased to 165 calls after the launch. The province explained that after calculating the increase and decrease rate of dispatch calls for each survey respondent, an average decrease of 29.9% was found. In particular, in Seongnam City, the average number of calls before the launch was 202 calls per month, which decreased to 131 calls after the launch. The average rate of change in Kakao T calls for individual taxi operators in Seongnam City was -35%. Guri City showed the highest decrease rate with an average decline of -48.7% before and after the launch.

On the other hand, for individual taxi operators in areas where Kakao T Blue does not operate, the average rate of change for each month over four months from March to June resulted in a +2.7% fluctuation in average Kakao T dispatch call numbers by region, showing no declining trend.

Additionally, in the areas where Kakao T Blue taxis operate, a decrease of approximately 13% in average regional revenue was found around the launch month. In contrast, revenue increased by an average of 3.6% in areas without Kakao T Blue taxi operations during the corresponding period.

Gyeonggi Province plans to deliver the results of this fact-finding survey to the Fair Trade Commission and request a thorough investigation, while requesting Kakao Mobility to prohibit arbitrary dispatch allocation and explore measures for mutual prosperity.

Kim Ji-ye, head of Gyeonggi Province's Fair Economy Division, said, "Through this fact-finding survey, some dispatch call concentration was confirmed, but whether this constitutes a legal violation requires investigation by the Fair Trade Commission. According to the current Fair Trade Act, the legal violation standard is too high. Separate legislation regarding platform transactions is necessary. We will also explore measures for mutual cooperation so that Kakao Mobility, as a pioneer in platform taxis, becomes a positive model within fair economy," she added.

Meanwhile, Kakao Mobility launched the Kakao T Blue taxi brand, a platform taxi with a subsidiary (KM Solution) as the franchise headquarters. As of the end of August, it operates a total of 1,926 vehicles across 14 regions in Gyeonggi Province.

Kakao T Blue taxis receive 20% of taxi earnings as franchise fees, and the taxi industry has raised suspicions that dispatch calls are being concentrated to their own taxis in order to increase franchise fee revenue.

In relation to this, Gyeonggi Province plans to hold an 'online platform market monopoly prevention measure discussion forum for fair platform transaction and consumer rights protection' at the Yeouido Ireum Center at 9:30 a.m. on the 24th with Gyeonggi Province Governor Lee Jae-myung and members of the National Assembly in attendance. The forum will be broadcast live through 'Gyeonggi Province Live (live.gg.go.kr)'.