Uber CEO Sees Bright Future in South Korea Despite Underdog Challenges

SEOUL, Aug 30 (Reuters) – Uber Technologies Inc. is doubling down on its efforts to expand in South Korea, where it currently lags behind the dominant local player, Kakao. Speaking in Seoul, Uber CEO Dara Khosrowshahi expressed confidence in the platform’s potential to attract more taxi drivers and passengers, fueling its growth in the competitive market.

Khosrowshahi emphasized that taxi drivers using the Uber app can earn more and stay busier. “We are growing significantly faster than the market,” he stated, predicting an increase in Uber’s market share.

Uber has faced challenges in South Korea since its initial entry in 2013, primarily due to regulations that restricted ride services to companies with taxi licenses. However, the company re-entered the market in 2021 through a joint venture with SK Group, launching the UT platform, which was rebranded as Uber Taxi earlier this year.

Currently, about 20% of South Korean taxi drivers use the Uber Taxi platform. Passenger numbers have surged nearly 80% year-on-year in the first half of 2024, with a significant increase in usage by international travelers since the rebranding.

While Kakao holds over 90% of the taxi-hailing market share, Uber’s aggressive strategy and growing popularity suggest a potential shift in the landscape.