Kay Woo, CEO of blockchain-based ride-hailing startup, underscores need for ‘painkiller’
For over a decade, the global ride-hailing landscape has been dominated by giants like Uber, Lyft, and Grab. Their pursuit of profitability has often led to steep commissions, increasingly burdening both drivers and passengers alike.
Kay Woo, founder of the innovative blockchain-based ride-hailing startup Tada, asserts this traditional model is fundamentally flawed. He highlights how drivers are squeezed by high commissions, while passengers frequently pay inflated fares.
Woo detailed the harsh reality in a recent video interview from New York: “Here, Uber and Lyft are charging about 35 percent commission, or sometimes like 45 percent commission. On top of that, approximately 15 to 20 percent is tax. So, if a passenger pays $100 from Manhattan to LaGuardia Airport, drivers typically receive only about $40 or $45.”
This stark imbalance directly influenced his decision to launch Tada’s service in New York City.
Since Tada initiated its ride-hailing service on March 3rd, the CEO has personally visited the LaGuardia Airport parking lot. There, he observes hundreds of ride-hailing drivers enduring long idle periods—sometimes two or three hours—in designated waiting areas, a testament to the inefficiencies of the current system.
Woo describes the system as “completely broken,” but finds these interactions invaluable. He shares that drivers are highly receptive: “Everybody is open to join, they start downloading the app and submitting documentation.”
This direct engagement is paying off significantly: Woo reports an average of 300 new drivers signing up daily for Tada since last month. The company’s unique proposition—zero commissions—is proving profoundly appealing to drivers.
Founded in Singapore in 2018, Tada operates as part of MVL, a pioneering Web3 mobility ecosystem. Utilizing blockchain infrastructure for transparent incentive distribution, Tada eliminates commissions, instead charging drivers a minimal, fixed flat transaction fee of just 60 cents per ride. This model has driven remarkable growth, with over 5.8 million registered users and 150 million rides completed, facilitating approximately $1.56 billion in driver earnings to date.
Woo highlights the consumer benefit: “When customers compare our price against Uber or Lyft, they’re going to see a difference of 20 to 30 percent.”
Acknowledging the initial skepticism – “It’s too good to be true” – Woo explains Tada’s market penetration strategy: “They’ll start comparing the price between Uber and Tada instead of Uber and Lyft. We aim to build a habit of price comparison, often achieved by offering coupons for initial trials. Just one or two trials are typically enough for users to recognize the significant price difference.”
Tada’s robust financial performance underscores its success, with Woo confirming 50 percent year-on-year growth and consistent profitability. Last year, the company achieved a gross merchandise volume of approximately $500 million across its operations in Singapore, Cambodia, Vietnam, Thailand, Hong Kong, and the US.
Looking ahead, Woo projects a potential IPO within a four-year timeframe. He emphasizes the company’s current profitability, while also exploring avenues for its cryptocurrency asset, MVL, to integrate with the platform’s cash flow circulation.
Woo outlines ambitious expansion plans: “We are confident to take over up to 15 percent of the market share (in New York) in two to three years. By that time, we will cover major cities on both the East and West coasts.”
He further added, “And then maybe in five to 10 years, we can actually flip the market to become the No. 1 player (in the US).”
Addressing the prospect of Tada re-entering the Korean market, Woo stated that the opportune moment would arise when a clear market ‘pain point’ emerges.
He explained the previous challenge: “Kakao Mobility has built a very efficient ride-hailing market in Korea, holding almost 95 percent of the market share.”
Woo elaborated on their past attempt: “When we previously tried to enter the Korean market, Kakao’s fee levels were minimal, leaving no clear pain point. When drivers and users lack genuine pain points, your service becomes a ‘vitamin.’ Selling vitamins requires significant persuasion and considerable marketing investment.”
However, Woo now views the Korean market as a “high pain point market,” not only in the taxi industry but also in the designated driver sector, both burdened by high commissions. Hinting at Tada’s intent to “disrupt” this landscape, he revealed the company is open to collaboration or even mergers and acquisitions.
Woo shared his ultimate vision: “Eventually, we want to cover the whole world.” Beyond New York and the US market, Tada is actively exploring the African market, with plans to penetrate Kenya and Nigeria. He anticipates this expansion will be “completely disruptive of the existing players.”
Drawing from past experiences, Woo candidly recalled multiple failed startup projects before Tada. He cited a 2012 venture to build a location-based social sharing service, which ultimately failed because it prioritized a product he wanted to make over genuinely addressing user problems.
He underscored a crucial lesson: the primary focus should never be on a company’s potential earnings when bringing brilliant ideas to fruition.
Woo shared his profound realization: “If you want to be a billionaire, that is actually a very strong reason you could fail. If you chase fame or money, you are meant to fail. That’s what I learned. Ever since our mission became solving the problems of the mobility industry and we became quite indifferent to making our own fortune, interestingly, money has actually been coming to us.”
Highlighting Tada’s driver-centric philosophy, Woo explained that by focusing on solving driver problems, a wealth of opportunities has emerged. He describes a unique triangular relationship: Tada treats drivers as its primary customers, and in turn, drivers treat riders as theirs.
He concluded with a powerful statement of intent: “Everybody needs this painkiller. And in every corner of the world, soon enough, we’re going to be there.”
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The Top 100 Global Innovators series spotlights the trailblazers shaping Korea’s future across a range of industries — from bold entrepreneurs and tech pioneers to research leaders — whose innovations are making a global impact beyond Korea. More than a celebration of success, the series offers a deeper exploration of the ideas, breakthroughs and strategies driving their achievements. — Ed.
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