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| The special consultation committee comprised of representatives from the ruling Democratic Party of Korea, the taxi industry and Kakao Mobility present their agreement at the National Assembly, Thursday, after months of deadlock over allowing paid ridesharing services to operate in Korea. Yonhap |
Service providers, cabbies, citizens say deal doesn't address problems
By Lee Suh-yoon
Paid ridesharing service providers, as well as some taxi drivers and citizens, are vexed by Thursday's "breakthrough" agreement over the service.
Although taxi drivers' groups, Kakao Mobility and the mediating ruling bloc call the agreement "a great social compromise" achieved through months-long negotiations, industry watchers and citizens say the agreement has much room for future dispute and may not bring convenience to service users.
According to the agreement, app-based ridesharing will be allowed during the busy commuting hours ― 7 t0 9 a.m. and 6 to 8 p.m. every day except for weekends and holidays. In return for this concession, licensed cabs will get priority for other app-based services in the future, the content of which has not been decided yet.
For improvement of taxi drivers' work conditions, taxi companies will abolish the current commission system, where each driver must pay the companies a set fee, around 135,000 won per day in Seoul, and instead adopt a monthly salary system that will guarantee minimum wage. The agreement also mandates a reduction of taxies driven by "super-old" drivers.
Once the details are fleshed out and passed at the National Assembly, paid ridesharing services will be able to officially start here around April.
But other ridesharing service providers showed dismay, especially about the clause that other mobile platform technologies in the future will be applied to taxis, not non-taxi private vehicles offering services, and the limit of operation hours to four hours a day and weekdays only.
Lee Jae-woong, CEO of car-sharing service Socar that also runs ridesharing app Tada, lamented on social media that the agreement was a step toward tighter regulations, bringing a dampening effect on the fledgling ridesharing industry in Korea. Tada operates through a legal loophole that allows ride-hailing services for vehicles ― mostly vans ― with 11 to 15 seats.
"I feel like this will leave a bad precedent of regulating and forbidding things that are already allowed by law," Lee said on his Facebook, Thursday evening. "With this current agreement in place, it will be difficult from now on to expect the emergence of notable ridesharing service firms."
Seo Young-woo, CEO of PoolUs, a small ridesharing app that is recently providing its service free of charge after being sued by taxi groups, also echoed Lee's sentiments.
"What age are we living in? I feel like I'm living in a history book," Seo vented.
Smaller taxi groups also rejected the agreement, saying the four taxi union representatives, who participated in the dialogue, should have pressed for a complete ban on ridesharing services.
An association of some 50,000 private taxi drivers in Seoul staged a protest in front of the National Assembly on Friday afternoon.
"Partially allowing ridesharing services is like stepping on the noble sacrifices of those who set themselves on fire to fight the services," the group said, referring to three taxi drivers who set fire to themselves as a show of protest, two of whom died.
Others also expressed doubts on whether taxi companies, which are already suffering from financial difficulties, can provide the monthly wage stably, and how taxi drivers who are "too old" would be advised to quit.
"The wage system has already been carried out by five taxi firms in Seoul since the early 2000s, ensuring around 2 million won a month for the driver," Kim Sung-jae, the policy advisor head at one of the four major taxi groups that signed the agreement, said in a phone interview. "As for the age limit, it may be set at 75 or 80, but considering the new physical and perception test required of taxi drivers over 70 years old every year, it may not have a significant effect."
Taxi users, on the other hand, pointed out the agreement fell short of solving the perpetual shortage of willing or available taxis late at night at nightlife hubs such as Gangnam, Hongdae and Itaewon, the main reason public sentiment has been against taxi drivers on the ridesharing issue.
"During the commute hours, I have no problem because I have buses and the subway, and I don't even need a taxi," an office worker in Seoul, surnamed Park, said. "The time I need a taxi is around 11 p.m. to midnight, after I work late or eat out. Having no ridesharing service during those hours is the same as having no service at all."
