KakaoTaxi challenges Uber in South Korea

SEOUL- South Korea's top mobile messenger operator launched a new web-based cab-hailing service Tuesday to compete with California-based Uber, whose service has been subjected to crackdowns from state regulators.

Daum Kakao, which claims some 50 million active monthly users, has taken various steps to avoid the pitfalls encountered by Uber, including using only registered taxi drivers for its service called KakaoTaxi.

Tuesday's lauch was for Android users, with an iOS version scheduled for release in April.

Uber started its service in South Korea in 2013 but immediately ran into opposition, with taxi drivers protesting what they saw as a threat to their livelihoods.

Its use of non-registered drivers triggered a series of lawsuits from municipal and state officials.

Last December state prosecutors indicted Uber's American founder and CEO Travis Kalanick and his Korean partner for operating an illegal cab service.

The municipal government in Seoul, meanwhile, offered a one million won ($920) reward for those who report cars offering rides through the Uber service.

And the national telecoms watchdog ruled that Uber Korea had failed to report its business and receive official permission before providing its location tracking services.

KakaoTaxi has avoided such problems by forging partnerships with taxi associations and a state-financed instant online payment operator.

As a safety measure it allows passengers automatically to receive the name and photo of a driver as well as vehicle information.

KakaoTaxi also has privacy safeguards such as an in-app messaging system that automatically deletes chats after a ride is completed.

The service tracks the flow of commuters in Seoul, which helps it figure out where to deploy cabs. It also allows users to pay for rides with their subway passes.

There are about 280,000 registered taxi drivers in South Korea.

source: www.abs-cbnnews.com

UberX ride-sharing service is now free in Seoul

SEOUL - U.S. taxi service provider Uber Technologies Inc on Wednesday said it will make its low-cost uberX ride-sharing service available free of charge in Seoul, in its second bid this month to operate legally in South Korea.

Uber started charging a fee last year for the taxi-like service, which matches passengers via a smartphone app with private drivers who do not hold commercial transport licenses.

Prosecutors subsequently indicted Uber's chief executive, Travis Kalanick, as well as its South Korean unit for violating a law prohibiting individuals or firms without proper commercial licenses from providing or facilitating transportation services.

"We want to actively work towards a consensus, and the first step to that process is switching off the fare," Uber's head of north Asia Allen Penn said in a statement.

Uber proposed a new registration system for its drivers in South Korea earlier this month in a bid to operate legally. But the transport ministry rejected the proposal and said it would stop the company offering its services.

Uber has been the subject of similar regulatory ire in countries around the world, even as it expanded into more than 290 cities.

In January, the city of Seoul declared Uber's services illegal and started offering rewards of up to 1 million won ($911) for people who reported private drivers providing transport through the company.

Yang Wan-soon, director of the Seoul city government's taxi and logistics division, told Reuters it is up to the courts to decide whether Uber can operate legally.

"The city also needs to consider whether the free taxi service would disrupt existing market order," Yang said.

source: www.abs-cbnnews.com

Taiwan fines Uber for illegal operations

Taiwan has slapped a string of fines on app-based taxi service Uber for operating illegally, the latest blow to the US company which is embroiled in a number of international disputes.

A spokesman for the island's highways department said popular but controversial Uber had registered with the government as a company, but had not declared that it was offering transport services.

The authorities have ramped up their investigation into the firm in response to anger from other taxi drivers who said their income had been hit unfairly by the app.

Uber said Tuesday it was in talks over the penalties.

"We have had many constructive conversations with the local authorities and hope to continue those engagements," Uber said in a statement to AFP.

"We are following all legal due processes with regards to the appeals."

The highways unit has handed down 30 fines to Uber totalling Tw$2.55 million ($81,200) since September for breaking transport laws against operating without a licence.

A total of 33 local drivers are also facing combined fines of Tw$1.65 million for the same offence.

"The company registered with the government as one whose business covers information services but not transportation services, which is required by law for a transportation company," Liang Guo-guo, spokesman for the directorate general of highways, told AFP Monday.

"In response to complaints from local taxi drivers, we've stepped up our investigation into the matter and levied fines on the company," he said, adding that taxi drivers had also alleged that Uber was not paying the proper tax.

Highway authorities have called on people not to take Uber cars, warning that they may not be fully protected by the law should they encounter disputes or have their personal information leaked.

Liang said meetings would be held between the transport and economics ministries to discuss whether to withdraw Uber's company licence, but gave no time frame.

The company is appealing to the transport ministry over the fines, Liang added.

San Francisco-based Uber links up drivers and passengers through a mobile phone application.

Founded in 2009, it is valued at around $40 billion and says it operates in 250 cities in 50 countries.

However, it is battling lawsuits for unfair competition and rising anger from taxi companies over its use of drivers who they say are not properly vetted and beholden to no one.

New Delhi this month banned Uber from operating in the Indian capital after a passenger accused one of its drivers of rape.

Thailand, the Netherlands and Spain have ruled it illegal and Denmark and Norway have filed complaints against the company.

Belgium last week said it would launch an investigation into Uber's tax affairs.

source: www.abs-cbnnews.com