Uber Technologies, Inc. (UBER) shares are trading slightly higher in pre-market trading today. The company’s CEO, Dara Khosrowshahi, recently reiterated Uber’s commitment to the South Korean market, aiming to challenge local tech giant Kakao for market dominance in the taxi-hailing sector.
Khosrowshahi stated that Uber will prioritize attracting more taxi drivers to its platform to fuel growth in the region. He emphasized that drivers using the Uber app will earn more and experience greater demand for their services. “The fact is that a taxi driver who uses the Uber app will make more money, will be more busy,” he said. Uber’s confidence stems from its rapid growth in the market, exceeding the overall sector’s expansion. The company is optimistic that its market share will continue to increase.
Uber’s initial foray into the South Korean market in 2013 was short-lived due to regulations that restricted ride services to taxi-licensed companies. However, Uber’s return to the market came in 2021 through a joint venture with South Korea’s second-largest conglomerate, SK Group, forming a company called UT. In March 2023, UT rebranded its taxi-hailing service as Uber Taxi.
Currently, Kakao holds a commanding 90% share of the South Korean taxi-hailing market based on app usage data. Uber’s ambitions are evident in its proactive approach to attracting drivers and its confident assertion that its market share will grow. The company’s recent partnership with SK Group and the rebranding of its service as Uber Taxi signal its seriousness about establishing a strong foothold in the South Korean market.
Investors interested in gaining exposure to UBER stock can consider ETFs like the iShares Trust iShares U.S. Transportation ETF (IYT) and the Franklin Disruptive Commerce ETF (BUYZ). As of Friday’s pre-market trading, UBER shares were up 0.50% at $72.59.
