Seoul targets 'illegal' Uber taxi operations

By Park Si-soo

The conflict between the Seoul Metropolitan Government (SMG) and car-sharing service provider Uber intensified Friday after the former stated it would reward people who report what it described as “illegal” Uber taxi operations.

Up to 1 million won ($910) will be paid to citizens who submit a reward application form along with supporting evidence such as a receipt, photo or video. The measure is expected to make Uber vulnerable to bounty hunters.

This move came one week after the prosecution indicted Uber CEO Travis Kalanick and executives of the firm’s Seoul office for offering unauthorized taxi services.

Uber Korea has decided to fight back, arguing it is offering a technological innovation that is being “welcomed and supported” by local citizens. The company has decided to reimburse fines imposed on its drivers. Plus, it will actively engage in the upcoming legal battle to have a court rule in its favor.

“Uber will never stop against all odds,” an Uber Korea spokeswoman said.

Korea doesn’t have a law stipulating that a car-sharing service is illegal. Nevertheless, SMG is moving to punish the California-based company and its drivers here, citing a lack of safety measures that taxis are required to take under the Public Transportation Law.

A trial involving the Uber executives will soon start and its result is expected to set guidelines on how to treat the service.

“We will make an all-out effort to keep Uber services running and available,” a spokeswoman said.

In a Dec. 24 statement, the company said it “firmly believes that our service, which connects drivers and riders via an application, is not only legal in Korea, but that it is being welcomed and supported by consumers.” The company also called on SMG to withdraw punishment against drivers who make a living through the Uber service.

In another statement released on Dec. 22, Uber called on Seoul Mayor Park Won-soon to revise the law to allow citizens to engage in ridesharing.

“It would make sense to permit options such as ridesharing in order to reduce the numbers of cars on the road. Such a move would be in keeping with Seoul’s aspiration to become a model ‘Sharing City,’” Allen Penn, chief manager of Uber’s operations in Asia, was quoted as saying in the statement.

Despite the outcry, SMG is ramping up its efforts to ban Uber.

“Uber does not go hand in hand with the city’s envisioned sharing economy since it does not abide by laws that require transportation businesses to take safety measures for the public. It only seeks profits by connecting riders with non-authorized drivers,” said Kim Kyung-ho, the director of the city government’s urban transportation department. “The city will crack down on those car rental businesses and individual drivers who cooperate with Uber.”

He said the city government hopes that the bounty program will help “root out illegal transportation services while establishing order in the transportation industry.”

The details of the reward procedures and the exact amount of the cash prize will be announced as early as February.