Subscribe
E-Paper
From the outside, it looks simple enough: Hook up private customers in need of certain services with those who can provide them through a mobile application. The company doesn't get into the picture: It merely operates the app so that the customers can contact their service providers and then it is done.
Not so, say the Seoul Metropolitan Government, taxi cooperatives, police and the prosecution. This is in violation of the Passenger Transport Service Act.
Who is involved is none other than Uber CEO Travis Kalanick who now faces charges brought by the Seoul Central District Prosecutors' Office along with Uber Korea Technology and MK Korea, a rental-car service operator.
Apparently, Uber has entered into a contract with MK in operating the app for providing services by drivers who lease its cars to those who link up with Uber app. Uber insists that the re-sharing service is completely legal and it has been working with all 250 cities around the world where it operates to remain within the boundaries of local laws.
Founded in 2009 in San Francisco, Uber quickly spread to 50 countries and was touted as the next big mobile venture. But it has been in the eye of the storm lately as it grapples with a growing number of controversies. The Netherlands, France, Spain, Thailand, Vietnam and Singapore, and some cities in Nevada and New Delhi have all banned Uber. It has also been sued in Portland, San Francisco and many other cities around the world.
However, most private users are seemingly approving the quality of Uber services — Uber says 90 percent of users are repeat customers — and have little complaints. In fact, Uber argues that its services involve innovative technology and is not simply a transport service.
The debacle between the Seoul city and Uber traces back to August last year when Uber Korea Technology was first established. As it is, there are a huge number of taxis in Korea, drivers of which — private or company-employed — are taking home no more than 1.5 million won a month after working 12-hour shifts.
But aside from the burden that Uber services may be handing down on these nearly-80,000 taxis, it does appear to be in violation of related laws. Whether or not Kalanick will come to Korea to stand trial — most people say this is very unlikely — some sort of reorganization will occur since the case is snowballing and will not stop until a solution is found.
In the process, however, there is concern that Korean authorities are sticking their noses where they do not belong and that they should allow market forces to work themselves out.
There are probably good reasons why customers are turning to Uber services, be it the simplicity of the process or the unpleasant services of taxi drivers. We need to broaden our sights to determine what is best for customers.
