Uber Global CEO visits Korea for the first media briefing
Dismisses possibility of SK Square selling its UTI stake
Passenger numbers up by 78% after rebranding
Pledged to communicate with regulatory authorities, emphasizing cooperation,
Dara Khosrowshahi, Uber Global CEO.ⓒDailyan Reporter Lee Joo-eun, ‘[Dailyan = Reporter Lee Joo-eun] Dara Khosrowshahi, Uber Global CEO, expressed his intention to further deepen cooperation with SK Square, dispelling speculations about SK Square’s possible disposal of its ‘UTI’ stake.’,
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, ‘During a media briefing held on the 30th at The Plaza Hotel in Jung-gu, Seoul, Khosrowshahi stated, “Today, I had breakfast with the new executives and management of SK Square,” and added, “Han Myung-jin, the new CEO, has a clear vision for the company, and today we had many conversations to continue developing the partnership between the two companies.”‘,
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, ‘Previously, there were claims in the IB (investment banking) industry that T Map Mobility, a subsidiary of SK Square, had entered discussions with Uber for the disposal of shares in the joint venture company ‘UTI Limited’. Uber and T Map Mobility each invested 51% and 49% in 2021 to establish the joint venture ‘UTI’ for the franchise taxi business, but they struggled to achieve significant results due to the dominance of Kakao Mobility and incurred losses. According to the UTI audit report last year, the company recorded an operating loss of 568 billion won following the 398 billion won in 2021.’,
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, ‘It was reported that Uber is discussing options to acquire T Map Mobility’s shares to pursue independent management. The rebranding of UTI to ‘Uber’ in February raised suspicions about changes in collaboration dynamics.’,
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, ‘Khosrowshahi mentioned, “As a Korean company, SK Square is well acquainted with the Korean market and has expertise in products, so we discussed how we will shape the future together,” and emphasized, “The Korean market is significantly different from Western markets, making it difficult for foreign companies to penetrate the market, so I think collaborating with SK Square was a good choice. We are receiving advice and expertise, and we believe there is high potential in the joint venture.”‘,
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, ‘The meeting was arranged for the global CEO to highlight the importance of the Korean market and share future business strategies as Uber showed significant growth after rebranding, focusing on expanding market share.’,
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, ‘Khosrowshahi commented, “Korea has a large taxi market and a high penetration rate of taxi platforms, making it a market with high growth potential,” and said, “By providing high-quality customer service in areas such as tech and automotive, we believe we can enhance competitiveness in such markets, form relationships with Korean companies, and advance as a more developed company.”‘,
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, ‘He further stated, “After rebranding, Uber taxis saw a 78% increase in passenger numbers in the first half of this year,” and added, “As the number of platform users and drivers increases, the reliability of dispatch services is also improving, confirming that in Korea, most arrivals occur within 3 minutes of calling.”‘,
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, ‘He then emphasized, “Uber taxis are not just a service that passengers enjoy. It’s a service that cannot exist without drivers,” and said, “We are doing our best for drivers in all markets where we operate, and as the number of platform users increases, driver earnings are also increasing significantly.”‘,
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, ‘They promised continuous communication and respect for regulatory authorities. Being a global company, they understand the importance of adhering to local culture and regulations. Uber entered the Korean market in 2013 with the ride-sharing service UberX but faced difficulties due to backlash from the taxi industry. They received illegal service verdicts from the court in 2015 and withdrew their business as a result.’,
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, ‘Khosrowshahi stated, “Uber understands that the regulatory environment in Korea is unique, and we have faced various challenges,” adding, “As we have expanded into many cities, cooperation with regulatory authorities is familiar, and since regulations are introduced with specific purposes, we believe it is important to respect them. The growth momentum currently seen in Korea is satisfactory, and it seems that cooperation with regulatory authorities is going well.”‘,
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, ‘When asked about strategies to counter Kakao Mobility, which holds nearly 90% of the domestic mobility market share, he said, “Kakao Mobility is an absolute powerhouse,” and mentioned, “Although they have the majority of market share, Uber is growing faster, and we want to point that out.”‘,