Kakao carpool app gets green light amid fierce protests from taxi unions

Kakao Mobility, the transport unit of South Korean messaging app Kakao, will be able to run a restricted version of its shelved car-sharing service after striking a deal with taxi unions in the country.

The agreement brings an end to protests by taxi drivers who claimed Kakao’s service would destroy their livelihoods, Reuters reports.

Photo credit: Michael-Kay Park

Kakao Mobility had proposed its car-sharing service last year, but was prevented from launching it due to fierce protests from licensed taxi drivers.

Demonstrations against the app have seen two taxi drivers die in separate incidents after setting fire to themselves in protest.

Trade unions representing the drivers had previously called for an outright ban on Kakao Mobility and similar apps, but reached a compromise with company through government-moderated negotiations.

Public opinion may also have played a role as a recent survey of about 500 South Koreans by Realmeter showed that 60 percent of respondents favor the car-sharing service.

Kakao Mobility’s service will be allowed to run for four hours daily on weekdays, and unions have requested the app include a feature to automatically turn off ride requests outside of its allowed hours of operation.

Kakao Mobility banked US$47 million in funding in February last year, and is backed by investors including TPG Capital, the Hong Kong Monetary Authority, the Teacher Retirement System of Texas, and the University of California Retirement Plan.

The company launched an electric bike-sharing service in the cities of Incheon and Seongnam earlier this week.