Covert Uber
Uber, which has aroused controversy around the world for its quasi-taxi service, is penetrating the Korean market in a roundabout way.
Since its debut in Korea in August this year, Uber has been a target of severe criticism. Seoul City began to crack down on Uber X and Uber Black, considering them illegal, and taxi companies have been opposed to them, too.
Uber Korea came up with Uber Taxi in order to deal with the situation. The idea is to enter the market via direct contracts with taxi owner-drivers. Uber X and Uber Black use non-taxi vehicles with no license, but Uber Taxi is based on contracts with licensed drivers and thus can avoid the possibility of illegality.
But problems remain, because none of the four cab company associations located in Seoul City have received any propositions from Uber Korea. At present, each one of the company-owned and individually-owned taxis in Seoul is associated with at least one of the four associations. Still, Uber Korea has kicked off its cab service. “The contracts are signed in the places where drivers eat,” a cab driver hinted, adding, “An Uber Korea employee came to me and recommended his company’s smartphone application, and I downloaded it because he said I would be able to get more customers.”
At 3:00 p.m., Nov. 18, taxi drivers staged a rally in Seoul Plaza to oppose Uber Korea’s service. In response, the company issued a statement reading, “Uber Korea would like to discuss new opportunities with taxi companies and drivers in Seoul.” It continued, “The leadership of Seoul City is threatened by those opposed to the technological advancement and innovation that will bring change, mutual trust, greater consumer choice, and convenience for both drivers and passengers.”
The Korean Federation of Taxi Workers’ Unions is maintaining a firm stance against Uber. Recently, it accused a person of using his Mercedes Benz for Uber X. Under the circumstances, the critical statement is likely to result in continuing disputes between the federation and Uber Korea.