Uber is actually stopping its business in Seoul. Uber Korea announces that the firm is suspending uber X and UberBlack as prescribed by the current law of South Korea. The company said that the decision was made as part of a proposal to the Taxi Industry.
The Uber X has stopped its service from 17:00 6th March. Moreover only foreigner, seniors over 65 years old, disabled people and government officials can only use Uber Black. Uber Seoul announced that it is based on the current of South Korea that has been revised from 29th of January this year.
Uber had been in a conflict with Seoul metropolitan government since its launch of service in Seoul. On 25th February Uber Seoul made Uber makes uberX ride-sharing service free in Seoul. Still the Uber Seoul is actually stopping its service for Korean citizens on Uber X and Uber Black, the company is providing the service for Taxi companies.
We will provide all Seoul Taxis with free access to Uber platform. This will help create innovation and enhancement to their services in Seoul. We believe that the use of the Uber application by taxis will benefit both the taxi driver, the taxi companies and consumers. – Official Announcement –
One of the major newspaper companies, Chosun Ilbo, recently reported that one of the reason for the barrier to accept Uber as an officially authorized transportation is that the total premium amount among the stakeholder is USD 6 billion. If you wanted to be a private operated taxi driver in Seoul, you should buy the license from the legacy owner with premium. The premium amount is around USD 60,000 ~ 100,000. If the Uber is being official transportation service, government and the taxi industry are worrying that the premium market will collapse. This is why Uber cannot be authorized in South Korea.
Uber has faced the resistance in all over the world with the legacy transportation service. We should look if this is the specified case only in South Korea or the expansion of the surrender to the legacy industry.