To avoid drunken driving, the short time driver agencies are commonly used for South Korean market. This driver agencies industry have become a USD 55 Million market with over 300 agencies via online(Application) and offline channel(Telephony channel). Due to the estimation, the No. 1 player has 200 thousand downloads with 30% market share. As the mobile subscribers are totally 50 million, Only 0.5% are using the driver service via mobile application. That means a lot of opportunity exist in this market field via mobile.
Two major players in the industry are joining the market: Kakao and Shinhan Card.
Kakao is trying to bring the offline based service into the mobile transaction field. Actually with the Kakao Taxi service, the mobile giant has collapsed the call taxi industry from the captive mobile messenger user by providing service for free. The ratio of calling taxi via Kakao taxi application is around 70% by the data of local press. Even this service is launching to the market with 20% fee charge, the convenience shall collapse the market is some perspective. However, Kakao is not planning to make its own transaction inside the application feature.
Almost 100% transaction is made via cash. Therefore USD 55 Million market means a new market for credit card company. That is why the largest South Korean credit card company, Shinhan Card, is trying to launch the service inside the mobile card application. Compared with Kakao, Shinhan card will link the drivers’ agency via application. However the transaction should be only done via card application. By this way the card company is finding the new hidden market that has been existing.
The disruptive power will be decided by the market and the shareholders decision.