Kakao T Venti (Image courtesy of Yonhap)
SEOUL, Nov. 22 (Korea Bizwire) – A mobility platform rivalry has intensified in South Korea as Tada operator VCNC announced plans for legal action against Kakao Mobility, accusing the tech giant of unfairly recruiting its drivers and mishandling personal information.
According to industry sources on November 21, Tada is considering filing a complaint with the Fair Trade Commission, alleging that Kakao Mobility improperly collected personal information and engaged in unfair business practices in its efforts to expand its premium taxi service, Kakao T Venti.
The dispute centers around Tada Next, a luxury van-hailing service launched as a pilot in November 2021 using Hyundai Staria vehicles, and began full operations in 2022.
As driver contracts are set to expire beginning November 25, Tada claims Kakao Mobility contacted its drivers via phone calls and text messages to persuade them to switch allegiance, even those still under contract.
“We are concerned that Kakao T, with its near-monopolistic market share, is targeting Tada, which has only hundreds of drivers, potentially with the intention of forcing us out of business,” a Tada representative stated.
The company alleged that Kakao Mobility sent messages containing Kakao T Venti company information, revenue details, and contact information for further inquiries.
Kakao Mobility, which holds an estimated 95% share of the taxi-hailing market, countered these allegations, stating that information was only provided to drivers who voluntarily requested transition information.
The company claimed that Tada drivers had previously expressed interest in Kakao’s taxi services, citing a July incident where Tada drivers demanded emergency support measures due to declining calls, followed by a formal request for assistance in transitioning to Venti.
“We only collect contact information through official channels such as the KMS website, driver app notices, and the Venti consultation office, as well as from the list of drivers who signed the July petition requesting emergency support,” Kakao Mobility explained, adding that some automated messages were sent when staff were unavailable.
The controversy has widened as Kakao Mobility accused Tada of similarly hosting business presentations targeting Kakao T drivers when launching Tada Next. Tada responded that these presentations were open to all licensed taxi drivers in Korea, not exclusively Kakao T drivers.
This dispute comes as Kakao Mobility faces other challenges, including regulatory sanctions over accounting irregularities.
Meanwhile, Uber Taxi has recently launched promotional campaigns in Korea, offering passengers three free base fares when registering with a code and providing drivers with 5,000 won incentives per passenger, as it attempts to gain a foothold in the market.
M. H. Lee (mhlee@koreabizwire.com)
