We move Life, We bring Life
When a customer sets a destination in Kakao Map, Navi, T or Bike, the shops and brands around the arrival point calculate what they can offer. The customer reviews only the offers that fit, and pays without leaving Kakao.
A fee is charged only after pickup and purchase are confirmed.
Independent shops and brands face different constraints. Dangdo analyses the two separately and addresses each with its own mechanism.
A shop can sit on a busy corner or a major taxi drop-off and still see little footfall. When the spend comes first, nothing about the outcome is guaranteed once it is committed. Dangdo charges only on orders where pickup and purchase are confirmed.
Brands already commit substantial budget to events, discounts and giveaways. Without raising the discount at all, placing that offer on the customer's route improves what the spend returns.
Customers take taxis out to areas well beyond the centre. For shops there, where the local advertising market is small, knowing that someone is on their way is a workable route to footfall.
The loop opens fifteen minutes before arrival and closes shortly after. What moves at each step is set out below.
A destination set in Kakao Map, Navi, T or Bike is received together with its expected arrival time. Discovery is active only within fifteen minutes and a five-minute walk.
One trip, one window, one offer
For each merchant our model calculates the optimal discount rate and estimates a purchase rate from the route and the time remaining. It selects the amount that maximises expected profit, capped by the campaign budget still available.
Expected profit = conversion × contribution
Two or three offers that fit the conditions, rather than a ranked list of ads. If the customer selects nothing, nothing is charged.
No impression or click billing
Payment is completed through Kakao Pay. Only orders with pickup and purchase both confirmed count toward performance, and the merchant is settled through Kakao.
Cancelled orders are excluded
No separate app to install. Setting the destination, reviewing the offer and paying all happen in Kakao services the customer already uses.
Because it integrates directly with systems Kakao already operates, customers never switch apps and merchants never adopt a new settlement process.
The calculation a merchant runs fifteen minutes before arrival. Adjust the inputs and the model recomputes on the server.
The settlement flow for a single ₩4,500 iced americano order, on the brand-funded model. Amounts are proposal assumptions.
In the merchant-funded model the shop funds the discount and points and pays Dangdo 5% of the order. In the brand-funded model the brand funds discount, points and the performance fee, and the shop is not charged twice. Either way the shop's real revenue settles through Kakao.
These figures show only that a transaction took place. They cannot establish whether the customer would have come without the offer, which is what the controlled experiment is designed to settle.
See the eight-week designDeveloped in Pohang and tested in Pohang. The roles are set; we are finalising the names.
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