Market Size for Drivers in Korea

Part
01
of two
Part
01

Market Size - Designated Drivers in Korea

The South Korean market size of designated drivers is expected to increase from $1.314 billion in 2014 to reach $6.458 billion in 2019 with a CAGR of 37.5%. Therefore, the number of requests for designated drivers’ services was estimated to be between 400,000 and 700,000 per day in 2015.

Designated Drivers in South Korea

  • An increase in the number of requests for designated drivers may reduce the total traffic fatality rates including the alcohol-involved traffic fatality rates.
  • Price depends on the city and the driven distance but it is "roughly the price of a taxi fare".
  • The number of requests for designated drivers in the country per day was 400,000 in 2014.
  • The average cost of a designated ride was $9 in 2014.
  • The number of requests for designated drivers’ services was estimated to be between 400,000 and 700,000 per day in 2015.

RESEARCH STRATEGY:

We started our research by looking for resources which directly and credibly provided the estimated the market size of designated drivers in South Korea, or the number of requests for designated drivers in the country per year, or the annual average price of the designated driver service in South Korea. In attempting to locate this answer, we conducted exhaustive research through market reports, statistic portals/databases, and trusted media articles. In pursuit of this strategy, we checked research websites like Research Gate, Docs Player, Industry Daily Observer, Business Wire, and PR News Wire. We also checked consulting websites such as Statista, Deloitte, KPMG, Accenture, and McKinsey, and media websites like Tech For Korea, Korea Herald, Korea Exposé, Forbes and The NYT. We found two reports about the South Korean market of designated drivers from Research Gate and Docs Player.
However, we came across some hurdles. Firstly, the market research report from Research Gate was obstructed by paywalls which made it impossible to determine the requested data. While it offered a synopsis of the data included in the paid reports, none of the information provided was substantial. It mainly provided qualitative data about the influences of designated drivers on the South Korean society. In addition, this report was published in 2014, which made it outdated so we provided it for reference only. Also, in 2019, Docs Player published a report about life in South Korea. The report provided some qualitative data about the market but it didn’t provide any information specifically for the market size of the designated drivers.
As an alternative research approach, we tried to find the requested information by checking the Korean governmental websites. We checked Ministry of Strategy and Finance (MoEF), Ministry of the Interior and Safety (MoIS), Ministry of Employment and Labor (MoEL), and Ministry of Land, Infrastructure & Transport (MoLIT) among others. This strategy did not lead us to any helpful information about the requested data. However, on the Ministry of Employment and Labor (MoEL) website, we found a detailed report about the country's labor force economical facts including the number of employees, the wage, and the work hours, but nothing specific for the designated drivers (number or wage). We only learned that the minimum wage in 2018 was 7,530 Won daily.
Next, we decided to expand the scope of the research to cover market reports, statistic portals/databases, and trusted media articles published earlier to the 24 months time frame with the aim to find any helpful data to calculate the compound annual growth rate (CAGR) and the projection of the market size. In order to find such information, we researched again for reports, articles, and statistics through market reports, statistic portals/databases, and trusted media articles. On Korea Herald, we found that the number of requests for designated drivers in the country per day was 400,000 and a drive’s cost in Seoul was about $9 in 2014. In addition, we found on Tech For Korea that in 2015, the average number of requests for designated drivers’ services was estimated to be between 400,000 and 700,000 per day.
With this information, we tried to triangulate the requested data. Our first triangulation attempt was as follows:
  • Calculate the CAGR of the number of requests between 2014 and 2015 using this CAGR calculator.
  • Calculate the daily revenue of designated drivers in 2014 by multiplying the number of requests for designated drivers in the country per day by the daily average price of a drive.
  • Calculate the market size by multiplying the daily revenue by 365 days (to find the annual revenue).
  • Assuming that the CAGR the number of requests between 2014 and 2015 can also be applied for the whole market between 2015 and 2019, calculate the market size of designated drivers in 2019 using this reverse CAGR calculator.

Calculation

1) CAGR:
  • The number of requests for designated drivers in the country per day was 400,000 in 2014.
  • The number of requests for designated drivers’ services was estimated to be between 400,000 and 700,000 per day in 2015. Therefor, the average number of requests is 550,000 per day ((400,000+700,000)/2 = 550,000).
  • To calculate the projected market size, we relied on this CAGR calculator. The starting value is 400,000 (2014), the ending value is 550,000 (2015), and the number of periods is 1 (years). We calculated the number of years by subtracting 2015 from 2014 (2015-2014=1). Based on these figures, the calculator states that the CAGR would be around 37.5%.

2) The market size in 2014:
  • The number of requests for designated drivers in the country per day was 400,000.
  • The average cost of a ride was $9 in 2014.
  • The daily revenue = number of request x average cost of a ride = 400,000x9 = $3,600,000.
  • The market size in 2014 = daily revenue x 365 = 3,600,000x365 = $1,314,000,000 or $1.314 billion.

3) The market size in 2019:
  • CAGR = 37.5%.
  • The market size in 2014 was $1.314 billion.
  • To calculate the projected market size, we relied on this reverse CAGR calculator. The starting value is 1,314,000,000 (2014), the CAGR is 37.5%, and the number of periods is 5 (years). We calculated the number of years by subtracting 2019 from 2014 (2019-2014=5). Based on these figures, the calculator states that the 2019 market size would be around $6,458,160,827 or $6.458 billion.
Part
02
of two
Part
02

Market Size - Taxi Drivers in Korea

The South Korean market size of taxi drivers is expected to increase from $6.073 billion in 2018 to reach $6.747 billion in 2019 with a CAGR of 11.11%. Therefore, the number of taxi drivers in South Korea increased from 270,000 in 2018 to 300,000 in 2019.

Taxi Drivers in Korea: Market size

  • The number of taxi drivers in South Korea in 2018 was 270,000.
  • The number of taxi drivers in South Korea in 2019 is 300,000.
  • According to the Seoul Metropolitan Government, the average income of a taxi driver is 2,130,000 Won. Using a currency converter, the average income is $1,874.4.
  • There were 72,000 taxis registered to run in Seoul in 2018. 23,000 of them belong to companies, while the rest is owned and operated by self-employed drivers.
  • According to Lim Seung-Woon, policy director at the Korean Automobile & Transport Workers’ Federation, "the biggest issue is the high possibility that carpool apps would take over the taxi market." Taxi drivers are fighting to protect their livelihoods demanding any explanation about why the government is pushing to allow carpool services.

Research Strategy:

We started our research by looking for resources which directly and credibly provided the estimated the market size of taxi drivers in South Korea, or the number of taxi drivers in South Korea, or the average income per year for these drivers. In attempting to locate this answer, we conducted exhaustive research through market reports, statistic portals/databases, and trusted media articles. In pursuit of this strategy, we checked research websites like Research Gate, Docs Player, Industry Daily Observer, Business Wire, and PR News Wire. We also checked consulting websites such as Statista, Deloitte, KPMG, Accenture, and McKinsey, and media websites like Korea Times, Korea Herald, Korea Exposé, Reuters and The NYT. We found three reports about the South Korean market of taxi drivers from Reuters, Korea Times, and Korea Herald.

We also found on the Reuters website that the number of taxi drivers in South Korea in 2018 was 270,000. In addition, on Korea Times we found that the average income of a taxi driver is 2,130,000 Won per month.Korea Herald published in 2019 a report stating that the number of taxi drivers in South Korea in 2019 is 300,000.

With this information, we tried to triangulate the requested data. Our first triangulation attempt was as follows:
  • Calculate the market size for taxi drivers in 2018 by multiplying the number of taxi drivers in South Korea by the average income per year for these drivers.
  • Calculate the market size for taxi drivers in 2018 by multiplying the number of taxi drivers in South Korea by the average income per year for these drivers assuming that the average income did not change between 2018 and 2019.
  • Calculate the compound annual growth rate (CAGR) using this CAGR calculator.
1) Market size in 2018
  • The number of taxi drivers in South Korea in 2018 was 270,000.
  • The average income of a taxi driver is 2,130,000 Won. Using a currency converter, the average income is $1,874.4.
  • The average income per year = 1,874.4 x 12 = $22,492.8.
  • The market size of taxi drivers in South Korea in 2018 = the number of taxi drivers x the average income per year = 270,000 x 22,492.8 = 6,073,056,000 or $6.073 billion.
2) Market size in 2019
  • The number of taxi drivers in South Korea in 2019 is 300,000.
  • The average income of a taxi driver is 2,130,000 Won. Using a currency converter, the average income is $1,874.40.
  • The average income per year = 1,874.4 x 12 = $22,492.80.
  • The market size of taxi drivers in South Korea in 2019 = the number of taxi drivers x the average income per year = 300,000 x 22,492.8 = 6,747,840,000 or $6.747 billion.
3) CAGR between 2018 and 2019
  • The market size of taxi drivers in South Korea in 2018 was $6.073 billion.
  • The market size of taxi drivers in South Korea in 2019 is $6.747 billion.
  • To calculate the projected market size, we relied on this CAGR calculator. The starting value is 6,073,056,000 (2018), the ending value is 6,747,840,000 (2019), and the number of periods is 1 (years). We calculated the number of years by subtracting 2019 from 2018 (2019-2018=1). Based on these figures, the calculator states that the CAGR would be around 11.11%.
Sources
Sources