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Uber to wholly acquire TMAP's stake in UT

Published: 20 Dec. 2024, 18:18

CHO YONG-JUN
[email protected]

Uber Taxi, previously known as UT [UBER TAXi]

Uber will buy TMAP Mobility’s 49 percent stake in UT, a ride-hailing joint venture between the two, to make UT a wholly-owned subsidiary of the San Francisco-based mobility giant.

The proposal will up Uber's entire holding in UT to 100 percent on top of the existing 51 percent, once the acquisition receives approval by TMAP Mobility's shareholders early next year.

“[Uber is] focused on expanding access to reliable rides while unlocking more earning opportunities for drivers across the country,” Uber Mobility’s APAC General Manager Dom Taylor said Friday, explaining that the acquisition “deepens [Uber’s] investment and commitment” in the country.

The two companies jointly established UT in 2021, with Uber taking a 51 percent stake in the venture. UT, however, faced fierce competition from Kakao’s taxi-hauling platform Kakao T and experienced sluggish growth over the first few years. The service was rebranded to Uber Taxi in March, in an attempt to integrate with the global Uber branding and appeal more to foreign travelers visiting Korea.

The company said that the user count in the first half of 2024 experienced an 80 percent surge on year.

Uber said the company will continue to cooperate with TMAP Mobility and its parent company SK Square, including its usage of TMAP ‘s mapping service.

"Uber intends to further strengthen Uber Taxi's technology infrastructure, safety standards and service quality to meet the expectations of riders and drivers," the press release said.

Uber first entered the Korean market in 2013 with its signature ride-sharing service Uber X but soon faced legal controversy — whether it violates the Passenger Transport Service Act — and opposition from taxi drivers. Uber X ended its service in Korea in 2015 but the company continued its Uber Black premium taxi service with licensed taxi drivers before establishing UT with TMAP Mobility.

BY CHO YONG-JUN [[email protected]]