Uber Faces Another Setback

30 May

Uber Faces Another Setback


The American taxi service suffered from a setback in South Korea as the Asian authorities banned private taxis.

Uber has suffered from a setback in South Korea as the Asian authorities have banned private taxis. Uber news informed that the Korean government has ratified an anti-Uber legislation. This new law basically bans unauthorized drivers from providing transportation services.

Uber news today reported that with this new development, the country has progressed in the field of transportation, as it has finally became the first country to suspend the service at a national level. Media sources highlighted that all private taxi drivers would have to act in accordance to the new bill but the legislators who tabled the legal document referred to UberX, a service that matches passengers with driving partners employing their own personal vehicles as taxis

Uber technologies informed that the service provider had already stopped providing the controversial services to the residents of Seoul, as its rivals and local officials had acted against the service. Government sources have reported that the law would be implemented in the latter part of the year.

Though the firm has successfully progressed in different parts of the world and its valuation has increased to $40,000,000,000, its business policy of serving customers with unlicensed drivers has been targeted by different stakeholders across the globe.

Industry sources revealed that the management of the technologically advanced cab service has not responded aggressively. The management of Uber has stated that it respects the legal authority’s decision and intends to continue communicating with the administration to explore the means by which it could serve Seoul and its residents.

The legislature’s action was anticipated as the relationship between authorities of the Asian country and the American service was not up to the mark. The Korean Transportation Ministry had rejected the service’s suggestion to establish a separate registration system for cab drivers.

Such a strict action is not new for the American organization, as it has suffered from similar actions in a number of other countries. Including Italy and People’s Republic of China. Furthermore, its Pop service was banned by the Italian court, which has ruled in favor of private taxi drivers, who had filed a petition against the transporter.

If the firm disobeys the judge’s order, then the authorities would fine it. The Chinese officials have also acted against the interests of the cab service, as they have raided its local office on suspicion of authorization. Experts believe that Uber should take steps to ensure that only authorized drivers provide all services.

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Posted by on May 30, 2015 in Technology, UBER


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