Uber has shown a distinct decline in user numbers since parting ways with T Map Mobility and transitioning to an independent system in South Korea. Since September 2023, Song Jinwoo, who has been leading Uber T (UT), has attempted a rebound through rebranding and strengthening promotions, but the decline in usage continues without noticeable results, leading to uncertainty about his reappointment.
According to data analysis platform Mobile Index on the 18th, the monthly active users (MAU) of Uber Taxi were recorded at 592,427 last month. After peaking at 738,761 in December of last year, it dropped to 618,237 in January, 568,065 in February, and 570,582 in March, continuing a four-month consecutive decline. The point of user decrease coincides with the time T Map Mobility transferred its 49% equity stake to Uber and exited.
The competitor, Kakao Mobility's "Kakao T," recorded an MAU of 12,894,451 during the same period, overwhelmingly dominating the market. The MAU of Uber Taxi is only about 4.6% of Kakao T's. An office worker, Choi (33), noted, "I have Uber installed, but when I urgently need to catch a taxi, I tend to open Kakao T first because I'm more familiar with it," adding, "The user interface is inconvenient, and there are cases where it can't accurately pinpoint my location, so in urgent situations, I naturally revert to the app I'm accustomed to.
Uber entered South Korea in 2013, introducing its ride-sharing service "UberX," but withdrew in 2015 due to illegal taxi controversies. In 2021, it established a joint venture "UT" with T Map Mobility, a subsidiary of SK Square, to re-enter the taxi-hailing market. However, due to losses and increased competition, T Map divested its equity and exited, leading to Uber now operating independently. UT recorded a negative revenue of 8.1 billion won last year, with operational losses amounting to 55.4 billion won. Cumulative operational losses since 2021 have reached 203.2 billion won.
Uber rebranded the name of the joint venture brand "UT" to "Uber Taxi" in March of last year. It strengthened promotions targeting foreign tourists and younger audiences to increase brand awareness, and there was a temporary rise in usage rates. Song Jinwoo emphasized at a meeting in February, "Usage rates increased by over 50% after rebranding," but the actual MAU has continued to decline since then.
Song was appointed as the representative of UT in September 2023 and has been overseeing Uber Taxi Korea since March of last year. While the official term has not been disclosed, there is a possibility that a similar trend could recur given that the former representative, Tom White, was replaced due to poor performance before the expiration of his two-year term. At that time, Uber and SK Square jointly reviewed the management renewal plan, resulting in White stepping down.
Prior to joining Uber Taxi, Song led the Vietnam branch of Baemin under Woowa DH Asia, but decided to withdraw after failing to establish a foothold in the local market after four years. With a market share of only 12% in Vietnam, Baemin Vietnam ceased operations at the end of 2023 as Grab and Shopee Food divided the market.
T Map Mobility has shown significant performance improvement since concluding its partnership with Uber. In the first quarter of this year, revenue was 69.1 billion won, and operational losses were 9.4 billion won, reducing the loss by 7.2 billion won compared to the same period last year. Revenue in the data and tech institutional sector increased by 28.5% year-on-year, and the AI-based service "Where to Go" and "TMAP Auto" also contributed to performance improvement.
An industry representative in the mobility sector noted, "It's difficult to change the habits of domestic users solely based on global brand awareness," adding, "Both customer acquisition and revenue have not shown significant rebounds, indicating there are still many barriers to settle in the South Korean market."