Uber CEO remains optimistic about South Korean market growth

Uber Technologies Inc CEO Dara Khosrowshahi recently said that he is confident about the South Korean market even though it is currently dominated by local player Kakao. In an interview with reporters, Khosrowshahi reiterated Uber’s interest in South Korea and described the company’s plans of encouraging more taxi drivers to join the platform as part of its growth plan.

During an interview, Khosrowshahi defended Uber, stating that the company’s platform provided numerous benefits to taxi entrepreneurs. For instance, he said that the amount of money a taxi driver will earn after accepting the Uber app will be more, and the driver will be busy. He also mentioned that Uber is steadily increasing its presence at a faster pace than the growth of the whole market, projecting further increase in the market share.

As of now, Kakao, a tech conglomerate company in South Korea, dominates around 90 percent of the market share for taxi-hailing apps according to the percentage of app downloads. Uber initially launched operations in South Korea in 2013 but left the country due to regulatory issues which demanded taxi permits for ride-sharing. The company returned to operation in 2021 by partnering with South Korea’s SK Group firm, introducing Uber Taxi as a rebranded service from their prior one.

After the rebranding occurred in March 2024, Uber Taxi has made remarkable advancement. According to Khosrowshahi, approximately 20 percent of taxi drivers in South Korea are connected to the Uber Taxi application. The service has seen 80% year-on-year growth in the first six months of 2024 with a significant rise in international travelers to South Korea.

Khosrowshahi's comments highlight Uber’s vision of expanding its reach in a saturated market and boosting the platform’s appeal to both drivers and passengers. With its expansion plan the company is quite confident about its existence in the highly saturated South Korean market for taxi hailing apps.