Kakao Mobility, Uber launch rival ride-hailing memberships in Korea

Kakao Mobility has launched a paid membership program in South Korea’s ride-hailing market, and Uber has announced it will soon introduce its own membership, intensifying competition for frequent riders.

Kakao Mobility introduced Kakao T Members on August 27, offering two plans: Mobility Plus for 4,900 won (US$3.5) per month and My Car Plus for 5,900 won (US$4.2) per month.

Mobility Plus gives users payback in points on premium taxi rides and other perks, while My Car Plus targets car owners with parking discounts and navigation points.

Uber, which also operates taxi services in Korea, announced it will launch Uber One at the same monthly price as Kakao’s Mobility Plus.

Uber One will offer up to 10% payback in credits for certain taxi rides and 5% for other services, with discounts for annual subscribers.

🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ Subscription services become defensive weapons as market competition intensifies

Kakao’s timing reveals how dominant players use membership programs to lock in customers when facing competitive threats.

The company launched Kakao T Members just one day after Uber announced its Uber One service for Korea1, suggesting this was a strategic response to preserve market share.

This subscription strategy aligns with patterns seen across industries where incumbents introduce loyalty programs when new competitors threaten their position.

Kakao has historically dominated Korea’s ride-hailing market while Uber faced significant restrictions, operating only premium services like Uber Black due to legal challenges2.

The membership war highlights a shift from Kakao’s previous position of market security to a more active defense against Uber’s entry into the Korean market.

2️⃣ Global subscription models provide proven templates for market entry

Uber’s approach demonstrates how companies leverage successful subscription models from established markets to accelerate expansion in new territories.

Uber One has already proven its effectiveness globally, reaching over 30 million members with membership fees exceeding a $1 billion annual run rate1.