The Assembly approved a revision to the Passenger Transport Service Act that only allows transport service providers to provide outsourced drivers of 11- to 15-seat rental vans if the customer uses the vehicle for more than six hours for tour purposes, or the operators rent the vehicles at ports or airports.
This effectively prohibits the main service of Tada, which has been offering ride-hailing services through an app since October 2018 with 11-seat Kia Carnivals. The app has more than 1.7 million registered users who choose the service as an attractive alternative to a taxi.
Tada and taxi operators have been in a fierce dispute, with three taxi drivers burning themselves to death after leaving messages condemning Tada and other ride-sharing or ―hailing services.
Hours before the revision was passed, Transport Minister Kim Hyun-mee told reporters that it was "not aimed at prohibiting Tada" but sought to "renew the regulatory system on transport platform services." She cited the revision allows Tada and other rental car-based ride-hailing service firms to operate if they win a transport platform service license, pay certain "monetary contribution" to compensate taxi drivers, and abide by a government-set cap in the number of vehicles being operated.
"Tada can operate because it has an 18-month period before the revision takes effect. It can then continue its service if it acquires a platform service license," Kim said. "The revision will help more service providers be registered and create more jobs."
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