Uber and Kakao Clash in Korean Ride-Hailing Market with New Subscription Services

Kakao Mobility has launched Kakao T Members, a subscription service aimed at consolidating its dominance in South Korea's ride-hailing sector. The offering includes two plans: Mobility Plus for frequent taxi users and My Car Plus for private vehicle owners, priced at 4,900 won and 5,900 won per month respectively. The MOVE underscores Kakao's strategy to expand its ecosystem in a market where it already holds significant share.

Uber has countered with the introduction of Uber One, a similarly priced membership at 4,900 won monthly, but with more aggressive incentives including 10% payback in ride credits. The global success of Uber's subscription model suggests potential for long-term customer retention and revenue growth, setting the stage for intensified competition in Korea's mobility market.