This was not a fight Uber was going to be able to win against the powerful taxi lobby in South Korea:
Uber, a taxi-hailing app operator, has suspended its popular ride-sharing service in Korea, succumbing to mounting concerns by Seoul authorities and angry taxi drivers.
The San Francisco-based start-up last week announced it was suspending its UberX budget service that allowed passengers to hail the company’s registered drivers through its smartphone application.
Its premium Uber Black, a limousine service for foreign nationals, senior citizens and handicapped people, will continue operating in accordance with local laws, the company added.
“We stay committed to cooperate to reach a compromise with the city and taxi industry, and look forward to working together to bring regulated options to Seoul,” Uber said Friday in a statement. [Korea Herald]
You can read more at the link.
Via a reader tip comes this article that explains how the Seoul government is trying to shutdown the ride sharing app Uber by indicting the company’s CEO:
South Korea has indicted the chief executive officer and local subsidiary of Uber Technologies Inc for violating a law governing public transport, becoming the latest jurisdiction to challenge the U.S. taxi service provider.
The Seoul Central District Prosecutors’ Office issued the indictment against CEO Travis Kalanick and the firm’s Korean unit for violating a law prohibiting individuals or firms without appropriate licenses from providing or facilitating transportation services, an Uber spokeswoman said. [Fortune]
You can read the rest at the link, but the Seoul government has been trying to shut down Uber in Korea in order to protect their own taxi drivers and the domestic Daum-Kakao app that provides an Uber like service and is endorsed by the taxi union. This indictment is probably being used to scare Uber out of Korea. It will be interesting to see how this works out.
Via the Marmot’s Hole it appears that the Uber’s days are number in Korea once Daum-Kakao releases their app that is endorsed by t
South Korea’s leading free messenger service operator Daum Kakao said Wednesday it will launch a taxi service app by the first half of next year as it initiates a new platform of connecting online and offline businesses.
Daum Kakao signed a memorandum of understanding with the Seoul Taxi Association and Korea Smart Card Co. for the service that would link customers with the closest cab through a mobile app. The taxi association has some 255 Seoul-based cab operators as members, and Korea Smart Card is the country’s top transportation payment system provider.
“Daum Kakao has established important grounds for the operation of Kakao Taxi, and we plan to expand cooperation with other taxi operators throughout the country in the future,” the company said in its release. [Yonhap]
You can read more at the link, but the Seoul city government passed an ordinance offering rewards of up to a Million Won to people who report Uber taxis which will set the stage for the Daum-Kakao app to take over this market.
I will be surprised if Korean authorities allow Uber to continue to operate over the long term considering how it will greatly affect the large number of taxi drivers in the country:
Uber, a U.S-based ride-sharing service app company, has proposed meetings with taxi drivers in Seoul who have been protesting its presence in Korea.
An official from the Seoul Taxi Association (STA) reacted negatively to the proposal, saying Uber will have to stop its service first.
“Uber remains open to meeting with the taxi associations to discuss how Uber can help improve the lives and economic opportunities for Seoul’s taxi drivers,” Uber Korea said in a statement released Tuesday.
The statement came after thousands of taxi drivers staged a rally in central Seoul, asking the city government to kick Uber out of the Korean market.
“Uber first must agree to stop their service. Then, we can talk,” a tax lobby official said.
Launched in August, Uber connects customers with Uber-registered drivers through a smartphone app. [Korea Times]
You can read more at the link, but has anyone tried this yet in Korea? I wonder how much cheaper this is compared to the already reasonable taxi fares?
