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| Tada has expanded its presence rapidly in Seoul and the surrounding metropolitan area, boasting over 600,000 users and 1,000 registered vehicles as of May. / Yonhap |
By Kang Seung-woo
Mobility platform operators will be permitted to do business if they contribute some of their earnings to the taxi industry, the government said, Wednesday.
In addition, the government plans to ease rules for joint services between taxi firms and new ride-hailing platforms like Waygo Taxi and apps such as Kakao T to enter the transport sector.
The plan was unveiled after a meeting between the Ministry of Land, Infrastructure and Transport and the ruling Democratic Party of Korea (DPK) amid an intensifying conflict between conventional taxi service providers and new mobility platform operators. The former has claimed the latter is undermining its business. Four cabbies have set themselves on fire in protest, and only one survived.
According to the ministry, app-based mobility services should chip in a certain portion of their profits to a state-managed fund to be established for the purchase of taxi driver licenses from those who do not actually drive, to prevent an oversupply.
However, the ministry has yet to decide the scale of contributions and method of payment, but the plan is expected to begin before the end of the year.
"The measures are aimed at settling the conflict between taxi and new platform companies, and seeking mutual growth, while providing better services to the general public," Transport Vice Minister Kim Kyung-wook said in a press briefing in Sejong.
One of the controversies in the issue was the car-hailing service by Tada, which was launched in October with 11-seat rental Kia Carnival vehicles instead of sedans. It has expanded its presence swiftly in the Seoul metropolitan area, boasting over 600,000 users and 1,000 registered vehicles as of May.
However, the ministry has delayed its decision on whether to allow mobility platform operators using rental cars as done by Tada, saying it will have further discussions with the taxi industry.
The ministry added that the current operation of Tada does not violate the relevant law.
As for easing regulations on joint services between taxi companies and the shared mobility operators, a joint service will require at least 1,000 cabs, lower than the current 4,000.
Also, the government has come up with plans to strengthen the competitiveness of the conventional taxi industry, which has been long criticized for reckless and rude drivers who selectively pick up passengers depending on their destination.
It is seeking to adopt a monthly salary system that will guarantee a minimum wage, abolishing a set fee that drivers have to turn over to companies out of their daily earning.
In addition, the government plans to ease requirements in order to allow more young people in their 20s and 30s to get licenses to run privately owned cabs.
