Uber is involved in more disputes about its ridesharing service. This time its UberX’s involvement in Seoul’s taxi business and what it means for other taxi services already in the city.
In a statement Uber said that after talking with the Seoul City Transport Division, they came to the decision that “it was in the best interest of Korean riders, drivers, and the community as a whole to further define our business offerings within the current confines of the regulatory framework, without ambiguity.”
As expected, it’s Uber’s want for flexibility that resulted in the Transport Division in viewing Uber of being an illegal operation in the city. In a 2014 statement from the Transport Division, put a ban on fee-services that use private vehicles. Despite the ban on UberX, the company has said that it would attempt to get more in line with Seoul regulations on taxi services.
From Uber’s side of the coin it could be seen as a known service being pushed out in favor of the Division creating its own taxi app. More weight is added to that side of the coin as Seoul has a roughly $900 bounty (₩1M) on Uber drivers.
While UberX will be put on ice in Seoul, Uber Black will continue to hit the streets. The luxury service allows Uber to be more in line with regulation since it employs professional chauffeurs. To drum up favor with the drivers and riders of the city, Uber is offering free rides and for licensed taxi drivers to use their app for free.