SEJONG, Aug. 12 (Korea Bizwire) – As speculation about Daum Kakao launching a chauffeur service is building, the Ministry of Land, Infrastructure and Transport made it clear that they viewed the situation from a neutral perspective.
The Ministry of Land, Infrastructure and Transport explained that chauffeur services are classified as a free business type. “There is no need for authorization or approval to enter the chauffeur business. If Daum Kakao does, we anticipate that they could start positive change in solving the problems that occurred, such as user safety and conflicts between drivers and relay services considering commissions”.
After Daum Kakao started its Kakao Taxi mobile call taxi service on March 31, over 10,000,000 calls have been placed, and over 140,000 drivers have joined as members.
Consumers say that it is more convenient for them if taxis come faster, and they feel much safer knowing information about the driver. Drivers are also pleased that there is no commission to be paid.
Currently, drivers of chauffeur services pay a 20 to 30 percent commission to the relay services. If Daum Kakao lowers or eliminates the commissions, it is easy to assume that the service will gain great popularity.
However, relay services are not happy, holding a rally in front of Daum Kakao’s headquarters in Bundang. They claim that Daum Kakao’s plan to expand their business to chauffeur services is a threat to the small businesses already in operation.
On the other hand, drivers of the chauffeur services also held a rally, saying that they would support Daum Kakao to diminish the tyranny of the current business operators.
Daum Kakao is saying they have not yet decided to expand their business to chauffeur services. “We are planning to launch a high-end taxi calling service starting from this fall, but the other 20 automobile enterprises are still under consideration.”
By Francine Jung (email@example.com)