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| An 11-seat van used in Tada's ride-hailing service operated by mobility startup VCNC / Captured from VCNC website |
By Jun Ji-hye
The head of car-sharing service SoCar has warned of strong legal action against taxi industry officials who filed a complaint with the prosecution against him and a CEO of the firm's subsidiary VCNC, which operates a ride-hailing service, called Tada.
According to SoCar, Tuesday, nine former and incumbent officials from a union representing privately-owned taxis had filed a complaint with the Seoul Central District Prosecutors' Office against SoCar CEO Lee Jae-woong and VCNC CEO Park Jae-uk, Feb. 11, claiming the Tada service violates the Passenger Transport Service Act.
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| SoCar CEO Lee Jae-woong |
Tada, launched in October, offers a ride-hailing service using 11-seat vans and outsourced drivers. When users enter a destination in the mobile app, a van arrives for them. The launch of the service came after VCNC was bought by SoCar in July.
Taxi drivers have opposed the new ride-hailing service on concerns that the service would reduce the number of their passengers and kill the industry. They claimed the Tada operator interpreted the law arbitrarily.
But Tada said it did not violate the law as the standing law bans hired drivers from using vehicles except for passenger vans that seat 11 to 15 people.
Lee said his firm did not intend to steal passengers from taxi drivers, saying its aim was to reduce the volume of traffic and create a new mobility market.
"I urge taxi drivers to stop harassing new industries," Lee said.
Taxi drivers have already been in conflict with Kakao Mobility, a subsidiary of Kakao, over the latter's plan to launch an Uber-style ride-sharing service.
Kakao Mobility suspended its pilot ride-sharing service on Jan. 18 due to continued protests from taxi drivers. Earlier, the company postponed the official launch of the service, slated for Dec. 17, following the death of a cab driver who set himself on fire in protest.
For its part, VCNC released a separate statement, saying the Seoul Metropolitan Government and the Ministry of Land, Infrastructure and Transport have already announced that the Tada service was legal.
The Tada ride-hailing service has gained popularity through word of mouth. The Tada app reached 200,000 downloads in December, two months after its launch, VCNC said, adding that 80 percent of users have become repeat customers.
