Paid Taxi Hailing App

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The taxi service app Kakao Taxi has launched a new paid taxi hailing service. The roll-out has sparked controversy, as the company’s previous service was offered for free. Kakao set the new taxi-hailing fee at one thousand won.

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Kakao Taxi began its paid taxi-hailing service on Tuesday. Its smart hailing system is based on artificial intelligence technology that assigns taxis. When a user enters the point of their destination, AI analyzes expected distance, travel time, past transportation patterns and the traffic situation to connect the user to the taxi driver who is most likely to respond. However, drivers are prevented from seeing the requested destinations in order to prevent them from cherry-picking customers. The fee for the smart taxi-hailing service has been set at one thousand won. Kakao Taxi has also announced a plan to improve its existing free taxi-hailing service as well. Drivers who agree to provide their services for short distances or in areas that are typically shunned by taxis will be rewarded with bonus points, which can later be converted into cash. The taxi industry is monitoring the situation, as the smart hailing fee may go up in the future.