South Korea Transportation as a Services Market Research Report – Segmentation By Mode of Transport (Ride-Hailing Services, Micro-Mobility Services, Public Transit Integration); Service Type (Individual Transportation, Corporate Transportation, Freight and Logistics); End-User (Consumer, Businesses, Government and Public Agencies); Region Forecast – 2024 - 2030.

Market Size and Overview:

The South Korea Transportation as a Service Market was valued at USD 466.28 million in 2024 and is projected to reach a market size of USD 517.34 million by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 2.1%.

The South Korea Transportation as a Service (TaaS) market is rapidly evolving as the country embraces smarter, more sustainable, and digitally connected mobility solutions. With increasing urbanization, growing environmental concerns, and a tech-savvy population, the demand for shared, on-demand, and app-based transportation services is on the rise. From ride-hailing and car-sharing to electric vehicle fleets and integrated public transit platforms, South Korea is transforming how people move within and between cities. The government’s support for clean energy and smart infrastructure is accelerating the shift toward mobility-as-a-service (MaaS) ecosystems that reduce congestion, lower emissions, and enhance convenience. As transportation continues to blend with digital innovation, South Korea is emerging as a leading market for TaaS in the Asia-Pacific region.

Key Market Insights:

Public transportation integration with digital platforms is gaining momentum, with over 70% of metro users in major cities like Seoul and Busan accessing route planning, ticketing, and real-time updates via mobile apps. This digital-first behavior is helping transportation authorities and private service providers create seamless multimodal travel experiences that combine buses, trains, bikes, and shared vehicles through a single interface.

South Korea Transportation as a Service Market Drivers:

High Urbanization and Dense Population in Major Cities are Fueling the Demand for Shared and On-Demand Mobility Services

South Korea’s rapid urban growth, especially in cities like Seoul, Busan, and Incheon, has created immense pressure on existing transportation infrastructure. With limited space, increasing congestion, and high vehicle ownership costs, many urban residents are moving away from traditional car ownership in favor of more flexible and affordable transport options. Shared mobility services such as ride-hailing, carpooling, and scooter-sharing are providing convenient alternatives for daily commuting and short-distance travel. As cities grow denser, the appeal of Transportation as a Service (TaaS) increases due to its efficiency in reducing traffic, parking issues, and environmental stress, making it a vital solution for South Korea’s evolving urban mobility needs.

South Korea’s Advanced Digital Ecosystem and High Smartphone Penetration are Accelerating the Growth of App-Based Mobility Services

With one of the highest rates of internet connectivity and smartphone usage in the world, South Korea is uniquely positioned to adopt digital mobility solutions at scale. Consumers are highly receptive to technology-driven services, and transport providers are leveraging this environment to offer seamless, app-based experiences through integrated ticketing, real-time tracking, and cashless payments. From taxis and buses to bike rentals and rail services, mobile apps are central to how Koreans plan and execute their daily travel. This digital maturity not only fuels the rapid uptake of TaaS but also enables constant innovation in the user experience, service delivery, and system integration, laying the foundation for a fully connected mobility ecosystem.

Strong Government Support for Green and Smart Mobility is Encouraging the Expansion of Sustainable TaaS Models

The South Korean government has placed a strong emphasis on sustainable urban development and carbon reduction, aligning its transportation policies with national green growth strategies. Through subsidies for electric vehicles, expansion of charging infrastructure, and incentives for low-emission transport services, policymakers are actively shaping the market toward eco-friendly mobility. Initiatives promoting smart city development and multimodal transit systems are further integrating TaaS into the country’s transportation planning. These government-backed efforts are not only improving accessibility and affordability of shared electric mobility but also ensuring that environmental goals are met in the long term, making sustainability a core driver of TaaS expansion.

Changing Consumer Preferences and Generational Shifts are Shaping a New Mobility Culture Focused on Convenience and Experience

Younger generations in South Korea are showing a clear preference for flexible, subscription-based, and experience-driven transportation options over traditional car ownership. Factors like convenience, time-saving, and eco-consciousness are driving their adoption of TaaS platforms for commuting, travel, and leisure. The cultural shift toward valuing access over ownership is being reinforced by the increasing costs of car maintenance, insurance, and urban parking. Additionally, users seek personalized, data-driven services that align with their lifestyle and travel habits—encouraging providers to invest in AI, IoT, and mobility analytics.

South Korea Transportation as a Service Market Restraints and Challenges:

Regulatory Hurdles, Infrastructure Limitations, and Market Fragmentation are Slowing the Full-Scale Expansion of TaaS in South Korea

Despite strong technological readiness and consumer interest, the Transportation as a Service (TaaS) market in South Korea faces several challenges that constrain its broader implementation. Complex and often restrictive regulations—especially surrounding ride-hailing and private vehicle sharing—limit the entry and growth of new service providers. Additionally, while urban areas are well-connected, many suburban and rural regions still lack the digital infrastructure and transportation networks needed to support seamless mobility services. Market fragmentation because of the presence of multiple small-scale operators with limited integration further affects user convenience and consistency in service delivery. To realize the full potential of TaaS, South Korea must address these systemic barriers through policy reforms, standardized platforms, and inclusive infrastructure development.

South Korea Transportation as a Service Market Opportunities:

The Transportation as a Service (TaaS) market in South Korea presents vast opportunities driven by the country’s technological advancement, growing environmental consciousness, and shifting consumer preferences toward flexible mobility. With strong government support for smart cities, clean energy vehicles, and digital infrastructure, there is significant potential for expanding electric vehicle-based ride-sharing, integrated transit platforms, and micro-mobility solutions across urban and semi-urban areas. Advancements in AI, 5G, and IoT further open doors for real-time traffic management, predictive mobility services, and personalized travel experiences. As demand surges for seamless, sustainable, and cost-efficient transport, both domestic startups and global players have the chance to scale innovative TaaS models tailored to South Korea’s digitally savvy population.

South Korea Transportation as a Service Market Segmentation:

Market Segmentation: By Mode of Transport:

•    Ride-hailing Services
•    Micro-Mobility Services
•    Public Transit Integration

Ride-hailing services are the dominant mode in South Korea’s Transportation as a Service (TaaS) market, largely due to their widespread adoption in urban centers like Seoul and Busan. With a strong user base, intuitive app platforms, and quick availability, ride-hailing has become the preferred option for daily commuters and casual travelers alike. The convenience of door-to-door service, flexible pricing, and integration with navigation and payment systems has solidified its position as the leading segment. Additionally, the surge of eco-friendly electric ride-hailing fleets has further strengthened its role in meeting both consumer expectations and sustainability goals.

Micro-mobility services are emerging as the fastest-growing segment, especially in densely populated areas and university districts where short-distance travel is frequent. E-scooters, bikes, and compact electric vehicles are being rapidly adopted by younger users and office-goers for their affordability, low environmental impact, and ease of use. The ability to bridge the "last-mile" gap between public transit stations and final destinations has made micro-mobility an essential part of the urban transport ecosystem. As cities expand dedicated lanes and regulations evolve to support safety and parking, the growth trajectory for this segment is expected to accelerate significantly.

Market Segmentation: By Service Type:

•    Individual Transportation
•    Corporate Transportation
•    Freight & Logistics

Individual transportation is the dominant service type in South Korea’s Transportation as a Service (TaaS) market, driven by the widespread use of ride-hailing, micro-mobility, and app-based transit services among the general population. The high smartphone penetration, tech-savvy users, and preference for convenience have made individual mobility solutions a central part of daily commuting, errands, and leisure travel. Services offering personalized routes, real-time updates, and digital payments have attracted urban dwellers, students, and professionals, making individual transportation the most widely used and recognized segment in the TaaS ecosystem.

Corporate transportation is the fastest-growing segment, fueled by the need for reliable, cost-efficient employee mobility solutions and sustainable fleet management. Companies are increasingly turning to subscription-based or on-demand transport services to move employees, especially in tech parks, industrial zones, and business districts. With the rise in hybrid working models and ESG commitments, corporates are also investing in shared electric vehicles and coordinated transport programs to reduce environmental impact and transportation costs. These tailored mobility solutions are gaining traction for their efficiency and ability to streamline large-scale employee travel across cities.

Market Segmentation: By End Use:

•    Consumer
•    Business
•    Government & Public Agencies

Consumer end use is the dominant segment in South Korea’s Transportation as a Service (TaaS) market, fueled by strong adoption of ride-hailing apps, e-scooters, and integrated transit services by everyday users. The tech-savvy population, particularly in urban areas, prefers flexible, app-based mobility over car ownership, using TaaS for commuting, errands, and leisure travel. High smartphone penetration, fast internet connectivity, and a growing emphasis on convenience and sustainability have solidified consumer demand as the core force shaping service models, features, and innovation in the mobility sector.

Business end use is the fastest-growing segment, as companies increasingly adopt digital transportation services for employee travel, client transport, and logistics optimization. The need for cost-effective, scalable, and eco-friendly mobility solutions has led to rising demand for corporate ride subscriptions, shared EV fleets, and tech-enabled route management. Businesses are also integrating transportation services into broader employee wellness, ESG, and operational efficiency strategies, fueling rapid expansion of this segment across industries like IT, finance, and manufacturing.

Market Segmentation: Regional Analysis:

South Korea has seen a significant rise in ride-hailing and car-sharing service usage, with more than 60% of urban commuters now using app-based transport solutions at least once a week. This shift reflects increasing consumer preference for flexible, on-demand mobility over private vehicle ownership. Younger demographics in particular are driving this trend, embracing digital platforms that offer convenience, transparency, and cost-effectiveness in daily travel.

COVID-19 Impact Analysis on the Global South Korea Transportation as a Service Market:

The COVID-19 pandemic had a mixed impact on South Korea’s Transportation as a Service (TaaS) market, initially disrupting mobility patterns due to lockdowns, reduced commuting, and public health concerns. Ride-hailing and public transit services experienced sharp declines in ridership as people avoided shared spaces. However, the crisis also accelerated a shift toward digital, contactless, and app-based mobility solutions, boosting the adoption of micro-mobility and private ride services. The pandemic highlighted the demand for flexible, scalable, and hygienic transportation options, leading to long-term changes in consumer behavior and prompting innovation in service delivery, fleet management, and integration with health and safety protocols.

Latest Trends/ Developments:

One of the key trends in South Korea’s Transportation as a Service (TaaS) market is the rapid integration of electric vehicles (EVs) and green energy fleets. Ride-hailing and micro-mobility operators are increasingly adopting electric cars, scooters, and bikes to align with the government’s carbon-reduction goals and appeal to environmentally conscious users. This shift has sparked advancements in charging infrastructure, cleaner fleet management solutions, and incentive programs—transforming TaaS into a core pillar of South Korea’s evolving green mobility ecosystem.

Another key development is the rise of AI-powered dynamic routing and mobility analytics platforms, which optimize vehicle allocation, reduce wait times, and improve traveler experience. Providers are leveraging 5G connectivity, real-time traffic data, and user behavior insights to offer smarter, predictive travel options at scale. Meanwhile, public transit integration continues to deepen, with seamless multimodal journeys enabled by unified ticketing, real-time schedule coordination, and cross-platform booking. Together, these innovations are driving a shift toward seamless, intelligent, and sustainable mobility across Korean cities.

Key Players:

•    Kakao Mobility (South Korea)
•    Tada (South Korea)
•    Baedal Minjok (South Korea)
•    SoCar (South Korea)
•    GreenCar (South Korea)
•    Coupang Eats (South Korea)
•    Didi Chuxing (China)
•    Uber (United States)
•    Lyft (United States)
•    Grab (Singapore)

Chapter 1. South Korea Transportation as a Services Market – Scope & Methodology
1.1. Market Segmentation
1.2. Assumptions
1.3. Research Methodology
1.4. Primary Sources
1.5. Secondary Sources

Chapter 2. South Korea Transportation as a Services Market – Executive Summary
2.1. Market Size & Forecast – (2024 – 2030) ($M/$Bn)
2.2. Key Trends & Insights
2.3. COVID-19 Impact Analysis
  2.3.1. Impact during 2024 - 2030
  2.3.2. Impact on Supply – Demand

Chapter 3. South Korea Transportation as a Services Market – Competition Scenario
3.1. Market Share Analysis
3.2. Product Benchmarking
3.3. Competitive Strategy & Development Scenario
3.4. Competitive Pricing Analysis
3.5. Supplier - Distributor Analysis

Chapter 4. South Korea Transportation as a Services Market - Entry Scenario
4.1. Case Studies – Start-up/Thriving Companies
4.2. Regulatory Scenario - By Region
4.3 Customer Analysis
4.4. Porter's Five Force Model
   4.4.1. Bargaining Power of Suppliers
   4.4.2. Bargaining Powers of Customers
   4.4.3. Threat of New Entrants
   4.4.4. Rivalry among Existing Players
   4.4.5. Threat of Substitutes

Chapter 5. South Korea Transportation as a Services Market - Landscape
5.1. Value Chain Analysis – Key Stakeholders Impact Analysis
5.2. Market Drivers
5.3. Market Restraints/Challenges
5.4. Market Opportunities

Chapter 6. South Korea Transportation as a Services Market: By Mode of Transport:
6.1 Ride-Hailing Services
6.2 Micro-Mobility Services
6.3 Public Transit Integration

Chapter 7. South Korea Transportation as a Services Market: By Service Type:
7.1 Individual Transportation
7.2 Corporate Transportation
7.3 Freight and Logistics

Chapter 8. South Korea Transportation as a Services Market: By End-User:
8.1 Consumer
8.2 Businesses
8.3 Government and Public Agencies

Chapter 9. South Korea Transportation as a Services Market Key Players:
Kakao Mobility (South Korea)
9.1. Tada (South Korea)
9.2. Baedal Minjok (South Korea)
9.3. SoCar (South Korea)
9.4. GreenCar (South Korea)
9.5. Coupang Eats (South Korea)
9.6. Didi Chuxing (China)
9.7. Uber (United States)
9.8. Lyft (United States)
9.9. Grab (Singapore)

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Frequently Asked Questions

The South Korea Transportation as a Service Market was valued at USD 466.28 million in 2024 and is projected to reach a market size of USD 517.34 million by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 2.1%.

The South Korea Transportation as a Service market is driven by urbanization, digital innovation, and growing demand for sustainable, flexible mobility solutions.

Based on End Use, the South Korea Transportation as a Service Market is segmented into Consumer, Business, Government and Private Agencies.

South Korea is the most dominant region for the South Korea Transportation as a Service Market. 

Kakao Mobility and Tada are the leading players in the South Korea Transportation as a Service Market.