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Photo courtesy of Kakao Mobility |
[Alpha Biz= Kim Jisun] Kakao Mobility has begun revising its taxi franchise agreements to stop charging commissions on rides not booked through its platform, ahead of new regulations set to take effect on May 11.
According to industry sources on February 19, Kakao Mobility affiliates, including DGIT Mobility, have been signing addendum agreements with affiliated taxi drivers since February 14.
The core of the overhaul is to exclude so-called “street-hail” revenue—fares generated outside the Kakao T platform—from commission charges. Previously, Kakao Mobility applied fees to total driver revenue, including both app-based rides and those arranged through other apps or direct street pickups.
This practice had drawn scrutiny from the Korea Fair Trade Commission, which penalized Kakao Mobility affiliates for collecting franchise fees of around 20% on total fares under various service-related charges.
The regulatory change stems from an amendment to the Passenger Transport Service Act passed in January, which prohibits platform operators from imposing fees on rides not mediated through their own applications.
While the move aligns with the new law, industry participants have raised concerns that eliminating commissions on non-app rides could incentivize drivers to favor street-hail operations, potentially reducing app-based service availability during peak hours. The need for transparent revenue separation systems has also been highlighted as a key operational challenge.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
