Kakao Mobility‘s corporate logo (Kakao Mobility)
Kakao Mobility is expanding into the on-call chauffeur service market by buying into the field’s No. 1 player, Korea Drive, the company said Sunday.
According to Kakao Mobility, the mobility service affiliate of Kakao Group, its subsidiary CMNP has acquired an undisclosed amount of shares in Korea Drive. It has established a new company called K Drive to take over Korea Drive’s 1577 Chauffeur business.
Kakao Mobility Chief Financial Officer Lee Chang-min will head K Drive.
While Kakao Mobility did not reveal the exact percentage of the stake it has acquired in Korea Drive, local media speculate it to be over 50 percent, giving Kakao management control.
Kakao Mobility does have its own app-based chauffeur service launched in 2016.
1577 Chauffeur is the leading on-call chauffeur service provider. As about 80 percent of all chauffeur hires are made via phone calls, Kakao is expanding to grasp the demands made via phone calls.
With the new corporate body, Kakao Mobility is also expected to connect the on-call service demands to its existing mobile platform.
“With the COVID-19 pandemic situation prolonging, the on-call businesses linking the chauffeurs and customers are facing difficulties and are looking for ways to utilize different platforms to run their services,” a Kakao Mobility official said.
“So, not only with Korea Drive, but we also plan create various cooperation models with other companies that want to work together to raise the satisfaction level of the service users.”
By Jo He-rim (email@example.com