“As KakaoTaxi is a special service that uses location data, we believe it is appropriate for the company to open the related information in detail,” an official from the KCC said. The official said the watchdog will also review whether to impose negligence charges on Daum Kakao.
KakaoTaxi, kicked off in March, connects a KakaoTalk user to the closest taxi in the area via a mobile call. KakaoTalk is South Korea’s most popular mobile messenger that commands about 35 million local users in a country with a population of 50 million.
A user simply needs to type in his or her destination on the app, which will be sent to an available cab driver. The app does not require the rider to tell the driver the current location, since it automatically shows it on the driver’s app through Global Positioning System.
It is compared to Uber, a similar tool introduced to the local market by U.S. venture Uber Technologies, which has been under intense scrutiny from local taxi drivers who have called for a ban on the service, saying it undermines their business.
Nearly 30 officials from Uber were booked last month on suspicion of operating illegal taxi services without a license.