South Korea: Uber to direct clients towards taxi company image

Uber Technologies Inc., the well-known car hailing service provider aims to comply with local regulations in South Korea, so the San Francisco-based company will have users in the country’s third-biggest city redirected towards a local cab service.

According to a statement from the ride-sharing company, Uber’s initial services in Incheon, northwest of Seoul, will be offered in partnership with Seven Call Taxi, a 3,000 cab-strong local business provider. This is the first step made by the US startup that has been valued by investors at $40 billion after the company’s chief executive officer, Travis Kalanick was indicted by South Korean prosecutors this December for alleged violations of South Korean transportation regulations. With the laws stating that only licensed taxis might be used to provide cab-related services the metropolitan government in Seoul, South Korea’s capital, announce in 2014 the company and other rivals could be barred because they’re not in compliance with safety regulations and unfairly compete licensed taxi services.

Uber, a San Francisco-based startup that specializes in offering car-sharing services, has been growing around the world after the very positive reception at home in the US from both customers and investors. But amid massive protests from traditional taxi and limo service providers around the globe, regulators have started to more thoroughly scrutinize such providers. Recently, Uber’s ride-hailing smartphone application-based services have been banned in numerous countries, such as Spain, India or Germany – and the legal challenges have now also encompassed several US states.

Via Bloomberg