Kakao T signs MOU with premium taxi service

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Kakao Mobility is partnering with premium taxi provider Tago Solutions to improve customer service quality and drivers’ income levels. The move comes as tensions continue to boil over with much of the taxi industry fiercely protesting the company’s carpooling business. On Thursday, Kakao’s mobility subsidiary announced that it signed an MOU with Tago Solutions, a company co-established by some 50 taxi companies and 5,000 taxi drivers last September with the goal of offering distinguished and premium taxi services like pet-friendly options.
Tago hit headlines last month for requesting the Seoul Metropolitan Government’s approval to offer Korea’s first women-only taxi services. The service, dubbed Waygo Lady, will only allow female drivers and customers.
Kakao is expected to give customers the option to choose Tago’s services via the Kakao T taxi-hailing app.
“We hope to create an environment where drivers are friendly and do not refuse customers,” Kakao added in a statement. One of Tago’s stated missions is to accept all customers regardless of destination. Though refusing customers is illegal in Korea, some drivers still do it if the requested destination is unprofitable.
Kakao is also hoping to improve drivers’ working environment with Tago. The premium services, which are expected to come at a premium price, will improve drivers’ income levels while the services for women will provide new opportunities for female taxi drivers – a minority in Korea.
The move comes as many other taxi drivers and unions are boycotting Kakao for its plan to launch a carpooling service that potentially threatens the taxi industry. A Kakao spokesman said the company and Tago are on good terms and have been working on the partnership for months.
Ahead of launching the premium services, Kakao said it will focus on developing technology that will allow for the seamless matching of users to taxis, while Tago will focus on training and educating drivers to provide high quality services.
Questions & Answers
Q.What is the primary objective of the partnership between Kakao Mobility and Tago Solutions?
What is the primary objective of the partnership between Kakao Mobility and Tago Solutions?
The partnership aims to enhance customer service quality and increase the income levels of taxi drivers. It also seeks to create an environment where drivers are friendly, do not refuse customers, and have improved working conditions.
Q.How does this new partnership relate to the ongoing tensions between Kakao and the wider taxi industry?
How does this new partnership relate to the ongoing tensions between Kakao and the wider taxi industry?
This move comes as many other taxi drivers and unions are protesting Kakao's plans to launch a carpooling service. Despite this, Kakao stated they are on good terms with Tago Solutions and have been working on this partnership for months.
Q.What specific features or services will Tago Solutions offer through the Kakao T app?
What specific features or services will Tago Solutions offer through the Kakao T app?
Tago Solutions will offer distinguished and premium taxi services, including pet-friendly options. They are also seeking approval for 'Waygo Lady', a women-only service with female drivers and customers.
Q.How will the partnership address the issue of taxi drivers refusing customers for unprofitable destinations?
How will the partnership address the issue of taxi drivers refusing customers for unprofitable destinations?
One of Tago's stated missions is to accept all customers regardless of destination, which directly addresses the illegal practice of refusing fares. Kakao hopes this creates an environment where drivers do not refuse customers.
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