Tian Tian Ventures Looks to Korea as They Accelerate Plans for Global Expansion
As China awaits the impending launch of TTgo, a ride-hailing platform developed by Tian Tian Ventures, the US firm is already exploring new possibilities in Asia, with a view to extending their presence in the region. Their latest target looks set to be South Korea, ranked No. 1 worldwide in terms of smartphone ownership and internet penetration rate.
MOUNTAIN VIEW, Calif., May 10, 2019 /PRNewswire-PRWeb/ -- As China awaits the impending launch of TTgo, a ride-hailing platform developed by Tian Tian Ventures, the US firm is already exploring new possibilities in Asia, with a view to extending their presence in the region. Their latest target looks set to be South Korea, ranked No. 1 worldwide in terms of smartphone ownership and internet penetration rate.
On paper, South Korea appears to be an ideal market for technology-based services such as ride-hailing apps, but in reality, it has proven to be a tough nut to crack. This fact is not lost on the ambitious US firm; Tian Tian Ventures have appointed local consultancy firms to conduct feasibility studies on how it can smooth entry into the South Korean market for its comprehensive sharing economy platform, which includes other services such as food delivery, lodging and online marketplace.
This prudent approach is in stark contrast to Uber's ultimately unsuccessful attempt to break into the South Korean market. In 2015, Uber was forced to suspend its operations in the East Asian country after facing regulatory setbacks from local and central governments, as well as strong protests by local taxi drivers' unions, while local firm Kakao have struggled to launch its own ride-hailing service, also due to the protests.
CEO Benjamin Berger revealed, "We are quietly confident about launching in South Korea some time in 2020. South Korea is an attraction option for Tian Tian Ventures' expansion, in terms of its demographics, culture and potential. We intend to work closely with regulatory bodies to ensure our services will be beneficial to the society as a whole."
South Korean law prohibits private vehicles from being utilized for commercial purposes, but makes certain exceptions to allow for private vehicle to help ease traffic during peak commuting hours. The laws; however, are unspecific about when these hours start or end. This has opened up a legally grey area which Kakao has taken advantage of, and it has already obtained approval from the South Korean government to begin its ride-hailing services, thinly veiled as "carpooling" in an attempt to sidestep legal roadblocks previous faced by Uber.
Tian Tian Ventures will be looking closely at Kakao's approach and adapt its methods, if successful; however, the US tech giant's ambitions does not end at merely ride-hailing. Recent reports revealed plans for extending its other services beyond the US. In 2018, ride-hailing accounted for about 30% of the revenue generated by its entire sharing economy platform. Other services such as its food delivery service has recorded strong performances and Tian Tian Ventures is eager to extend these services beyond the US.
South Korean food delivery services are thriving, driven by burgeoning demand amid the spread of the lone-eating trend and a rising number of single households. 7 in 10 Koreans order in via mobile and the numbers are rapidly growing, with industry experts estimating the market to be worth up to US$2.8 billion by 2023.
Regardless of the outcome of the current protests, Tian Tian Ventures looks determined to proceed with plans for a South Korean expansion. The company recently launched its Series A funding round and will be eager to make an impact in the sharing economy, especially in Asia.
SOURCE Tian Tian Ventures
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