T-money Mobility, a mobility payment platform operator, and the Seoul Taxi Transportation Business Association have joined hands to commercialize self-driving taxis. The Seoul taxi association will provide transportation operating rights and infrastructure such as licenses, garages and maintenance networks, while T-money will serve as a payment platform connecting passengers with vehicles using its accumulated traffic data. Notably, the taxi industry, which had been negative toward self-driving taxis, has shifted course to join the new-technology transformation.
The change in the taxi industry's stance stems largely from practical reasons. Over the past 10 years, the number of drivers at domestic corporate taxi firms has fallen by nearly half, leaving the industry struggling with labor shortages and wage burdens. The utilization rate of Seoul's corporate taxis, of which 22,500 are registered, currently stands at around 30 percent. The reality that the existing manpower-centered business model is uncompetitive has led to a shift in perception toward robotaxis. But the domestic robotaxi situation is not easy. The United States, China and others began commercialization years ago, amassing large volumes of data and users. By contrast, Korea is running Level 3 self-driving taxis on a trial basis in the Gangnam area of Seoul and will unveil its first fully autonomous Level 4 robotaxi in Sangam-dong only this November. In such circumstances, China's Baidu has formalized its entry into Korea with Apollo Go at the forefront, and Waymo of the U.S. firm Alphabet is also reviewing entry into the Korean market, putting Korea at risk of losing even its transportation leadership.
To respond to global companies' entry into the domestic market and revitalize the self-driving industry, a bold regulatory overhaul is urgently needed. Currently, robotaxis can operate only in designated pilot-operation zones, but the system needs to be changed so that vehicles certified to meet a certain level of safety can operate in major cities as well. The licensing procedures that differ by local government should be greatly simplified, and even the introduction of a national-level certification system should be reviewed. Establishing a robotaxi operator license, easing regulations on the number of vehicles, and overhauling accident liability standards and insurance systems are also tasks that cannot be put off indefinitely. To seize leadership in the future mobility competition, unnecessary regulations must be boldly removed and systems that guarantee safety and responsibility must be swiftly put in place. It must be kept in mind that while the robotaxi competition will be decided by technological prowess, how quickly the system is changed is no less important.
