Tada, Socar's Ride-Hailing Platform, Contributes to Increasing Wave of Tech Layoffs

Tada, Seoul-based ride-hailing platform operated by Socar's subsidiary VCNC, is set to undergo employee layoffs as part of a restructuring effort aimed at cost reduction, according to confirmation from the company to TechCrunch.

The exact number of staff to be affected by the layoffs is yet to be determined, as it will be conducted through a voluntary early retirement program, as stated by a VCNC spokesperson. More specific details will be announced in the near future. Local media outlets suggest that Tada will reduce its workforce by at least 50%, approximately 45 employees.

Tada is jointly owned by Viva Republica, the operator of the Korean financial super app Toss, and Socar. This development follows Socar's initial public offering (IPO) in 2022 and the recent breakdown of merger discussions between Viva Republica and Jinmobility, the company behind i.M, another Korean ride-hailing service.

Viva Republica's acquisition of a 60% stake in Tada in 2021 aimed to integrate the struggling ride-hailing company with its payment service. However, with the failed merger negotiations with Jinmobility, Viva Republica is reportedly exploring alternative strategic partnerships to sustain Tada's operations. The spokesperson from Viva Republica stated that discussions are ongoing but did not provide further specifics, while declining to comment further.

In the South Korean ride-hailing market, Kakao Mobility, a subsidiary of Kakao, holds the largest market share with over 90% in 2021, according to the Korea Fair Trade Commission. Another player in the country's car-hailing space is UT Taxi, a joint venture between Uber Technologies and TMap Mobility.

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