Seoul-based ride-hailing platform Tada, which is operated by VCNC, a subsidiary of Korean ride-sharing company Socar, has announced its plans for a restructuring that will involve staff reductions as part of cost-cutting measures, according to confirmation from the company to TechCrunch. While the exact number of employees to be laid off has not been determined yet, Tada will be implementing a voluntary early retirement program, with more specific details to be announced in the near future. Local media outlets have reported that Tada is expected to layoff some of its employees by at least 50%, which would amount to approximately 45 individuals.
Tada is jointly owned by Viva Republica, the operator of Korean financial super app Toss, and Socar, another transport-based company that offers various mobility services, including car rental, car-sharing, and ride-hailing. This development comes nearly ten months after Socar’s IPO in 2022, and the recent breakdown of merger discussions between Viva Republica and Jinmobility, the operator of i.M, a Korean ride-hailing company.
In 2021, Viva Republica acquired a 60% stake in Tada with the intention of integrating it with its payment service, aiming to revitalize the struggling car-hailing company. Despite experiencing a failure in the talks of a merger with Jinmobility, Viva Republica is said to be in the market for potential strategic partnerships to ensure the sustainability of the transport service, Tada. In one of the interviews conducted to involve more details, the delegated spokesperson for the Korean fintech firm stated that they are actively looking out for various options in order to secure the future of Tada but refrained from providing further specifics. Viva Republica declined to comment on the matter.
In the South Korean market, Kakao Mobility, the car-hailing unit of Kakao, holds the largest market share, accounting for over 90% in 2021, as reported by Korea’s Fair Trade Commission. Another player in the car-hailing space in the country is UT Taxi, a joint venture backed by Uber Technologies and TMap Mobility.
As Tada undergoes this restructuring process, the industry will be closely watching for further developments and the potential impact on the competitive landscape in South Korea’s ride-hailing market.
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