Google To Invest 50 Billion Won In South Korean Taxi-Hailing Company

Google has decided to invest more than 50 billion won which is equivalent to $44.15 million in Kakao Mobility Corp. Kakao Mobility Corp is a top taxi-hailing company in South Korea. Google will be buying new shares of 56.51 billion won from Kakao and that is how they are going to invest in it.

Kakao Mobility’s total worth is estimated to be around 3.35 trillion won. By this pact, Google will be getting about 1.69 percent stakes in the company. Kakao Mobility is known to have 28 million users.

By investing in this scheme, both Google, as well as Kakao Mobility has decided to contribute to the development of cloud-based AI technology and make a harmony between Google services and Kakao Mobility’s platform.

A newcomer UT, which is a joint initiative between T Map Mobility Co., a subsidiary of South Korea’s top mobile carrier SK Telecom Co. and cab-providing firm Uber Technologies Inc. is giving a very tough competition to Kakao Mobility and this announcement was a result of that.

Reports from Yonhap news agency states that UT is going to launch a new service by the middle of the third year. This service will be a combination of taxi-hailing services from Uber and T map Mobility. T Map Taxi, which is T Map Mobility’s service, is the second largest in the country. It has 200,000 registered drivers and 750,000 users per month, as per sources from the company.