As they say in life, “Expect the unexpected,” and with Uber, you will surely do. Uber is finding itself in competition with South Korea’s Kakao Corporation for the launch of membership programs. Here’s the story.
Paid subscription programs
Coincidence or not, both Uber and Kakao Mobility now have paid subscription programs with the goal of securing more loyal customers and building a more stable revenue.
Usually, membership programs are designed to offer cashbacks, perks, and curated benefits for frequent riders.
The announcement of these two companies came just a day apart from each other. Let’s start with Kakao.
Kakao Corporation is a South Korean Internet conglomerate company headquartered in Jeju City. It is most renowned for KakaoTalk, a free mobile instant messaging application for text and calls, but it also partially owns LOEN Entertainment.
On August 27th, Kakao launched the Kakao T Members subscription service, targeting frequent users with a curated benefits package. The first option is Mobility Plus.
Mobility Plus is aimed at taxi users. It offers three percent payback in points when using premium tax services like Venti or Black, and five percent payback when using pet-friendly or bike-friendly ride services. There are also coupons to save on rental cars, leisure activities, and overseas ridesharing services.
The other option is My Car Plus. This membership, on the other hand, caters to car owners, offering them benefits, such as a monthly parking fee discount, special parking pass deals for night and weekend rides, and KakaoNavi points monthly.
Uber One for Koreans
Finally, Uber One is now available in Korea. Uber Taxi introduced Uber One on August 26th, offering direct rewards on taxi rides.
To compete well with Kakao, the monthly prices of the membership are roughly the same, if not exactly the same. Uber One members could earn up to 10 percent payback in credits for every taxi ride, which users can use on future trips.
Get more discounts when you choose a yearly subscription.
Which is the better option?
“While metrics like supply cost, dispatch success rate, and overall service quality have improved, Uber still faces the challenge of making a lasting impression on Korean customers,” stated Song Jin-woo, the Uber Korea general manager.
While Kakao Mobility has this goal of expanding its loyal customer base with a wide range of benefits in their daily lives, there’s Uber Taxi, which focuses on delivering immediate and much higher value, targeting people whose primary concern is enjoyable taxi rewards, rather than the general benefits that Kakao offers.
Uber One’s presence started in the United States in November 2021, and since then, its subscriber base has soared, with membership fees exceeding a $1 billion run-rate as of last year.
Ridesharing media reported that Uber One has now reached more than 30 million members and their subscription members are generating 32 percent of mobility and delivery gross bookings, plus over 45 percent of delivery gross bookings specifically.
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