The passing of a law against the ride-sharing service Tada is a key hindrance to the nation’s push for invention. This is according to specialists.
The bill lets Tada service driver Value Creators & Company lend out its trucks with operators for not less than 6hrs at ports and airports, and just for tour intentions. Presently, a chauffeur-operated Tada truck can handle clients minus restrictions on the hours of rental area and service.
The move shows the escalating tug of war over the nation’s growing movement business between technology-operated movement firms and taxi operators.
Tada was unveiled in 2018 in October has won 1.7 million enrolled users. This is in a hint of public approval for the latest mobility choice in a nation where it is not simple to get a taxi in busy commercial places. This is especially at night.
Tada fixes prices charges higher as compared to those of traditional taxis when it began last year. However, its standard charges of 4,000 secured (US$3.40) win and are not much different from the normal taxis in Seoul that increased 19% to a beginning ratio of 3,800 gained in Feb. Tada connects clients to vans operated by one of the 12,000 hired drivers by the service. The revised bill is expected to start working in 18 months following its proclamation.
The passing attracted strong reaction from the marketing society and enterprise firms. This is because for weakening the incentive for deregulation at a period when South Korea is driving to promote inventive industries as its latest growth motors.
Car-hailing application SoCar that fully owns VCNC has expressed concern over the passing of the bill. It also said that it will soon halt the provision of the Tada Service, which implies ride in Korean.
Lee Jae-woong, the SoCar Chief Executive criticized the passing of the bill. He stated that it did not show the concern of the public and the development capability of the latest sector in the age of new movement platforms. Rather, it only concentrated on defending the concerns of the taxis sector. The Federation of Korean Taxi Workers’ Union welcomed the provision bill passage
“The passage has laid the foundation for new ride platforms to continue their services without unnecessary social conflicts between taxis and new platform providers,” said the federation in a comment.
The parliamentary reading came only two weeks following Lee and CEO of VCNC Park Jae-uk were pronounced not liable in the Seoul Central District Court.
The judiciary cleared the two of the charges of breaking the passenger transportation service law with the latest service.
The two were charged in October 2019 minus physical custody for supposedly operating a transportation market minus a permit.
“The Tada service is provided in a contract that offers users a tailored rental service in time of need via minute-based reservation. It is a rental car service based on the mobile application,” said the court. The decision by lawmakers is seemingly intended for winning the minds and hearts of the 300,000 taxi operators and their families.