The San Francisco-based Uber Technologies has arisen as the largest player in the new and expanding car-sharing segment that competes with traditional taxi and limo services – but that comes with serious hurdles.
The latest in a very long series of legal troubles comes from Asia, where Chief Executive Officer Travis Kalanick has been indicted in South Korea and China’s biggest municipality has announced it would focus on banning the service – and these are only the freshest examples of increased legal scrutiny.
The Seoul Central District Prosecutors’ Office has charged yesterday Kalanick, Uber’s Korean unit and car-rental partner MK Korea because of allegedly infringing on a local transportation law that bans rental cars from operating as cabs. The indictment is only a report for now, as Bloomberg found out from an official at the department, who declined to be named because he wasn’t allowed to openly discuss internal policy. The official also decided not to comment whether the prosecutors would expect Uber’s CEO to show up for questioning.
When it comes to China, the southwestern city of Chongqing’s municipality declared “war” and said it would “strike harder” at companies that provide illegal transportation services using car-booking software such as Uber, according to a statement coming from the transportation commission’s website.