- Uber’s CEO Dara Khosrowshahi said in South Korea that Uber will continue to work on the Korean market and grow by attracting more taxi drivers, even though it is currently at a disadvantage in the market.
- Since the rebranding to Uber Taxi in the first half of 2024, the platform has seen a year-on-year growth of nearly 80% in the number of passengers, including a doubling of usage by international travellers.
OUR TAKE
Uber CEO Dara Khosrowshahi was in South Korea to reiterate the company’s commitment to the market, expressing optimism about Uber’s growth prospects despite its current disadvantage in the local competition. Khosrowshahi emphasised that Uber will attract more taxi drivers to the platform by offering higher earning opportunities and increasing the busyness of its drivers. Despite Kakao’s dominance of the taxi market in South Korea, Uber remains confident that it will continue to grow its market share, especially following the re-launch of its brand, which has seen a significant increase in usage by international travellers.
-Rae Li, BTW reporter
What happened
Uber CEO Dara Khosrowshahi has said in South Korea that the company is committed to expanding its presence in the country despite its disadvantage in the local market. Uber has been in the South Korean market since 2013 when it first entered the market and exited for a time due to regulatory restrictions until it re-entered the market in 2021 through its joint venture with SK Group, UT. In March this year, UT’s taxi service brand was renamed Uber Taxi, giving Uber renewed momentum in South Korea.
Khosrowshahi revealed that around 20% of South Korean taxi drivers are now using the Uber Taxi platform, and that the number of passengers on the platform grew by almost 80% year-on-year in the first half of 2024. Of these, usage by international travellers has doubled since the rebrand.Uber believes that by attracting more taxi drivers and increasing their revenue, it can continue to increase its market share in a market dominated by Kakao.
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Why it’s important
It reflects Uber’s market strategy and execution in the face of a strong competitor. With Kakao’s absolute dominance in South Korea with its more than 90% market share, Uber as a challenger has to find innovative ways to attract drivers and riders.Khosrowshahi’s statement and Uber’s repositioning in South Korea demonstrates the company’s resilience in a fiercely competitive environment as well as its strategy of growth through partnerships with local businesses, rebranding and other strategies determination.
Uber’s flexibility and adaptability tackle challenges in different markets globally. The success or failure of the Korean market may have a profound impact on Uber’s strategy in other similar markets. Therefore, Uber’s performance in South Korea is not only relevant to its position in the market, but also has important lessons for its global business expansion.
