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Seoul to ban ride-sharing app Uber | Seoul to ban ride-sharing app Uber |
(about 3 hours later) | |
Seoul is planning to ban mobile phone ride-sharing app Uber just as the firm aims to accelerate expansion in Asia. | Seoul is planning to ban mobile phone ride-sharing app Uber just as the firm aims to accelerate expansion in Asia. |
The city's council is citing concerns including background checks on drivers, vehicle upkeep, and the impact on the traditional taxi trade. | The city's council is citing concerns including background checks on drivers, vehicle upkeep, and the impact on the traditional taxi trade. |
Uber was launched in South Korea's capital last August. | Uber was launched in South Korea's capital last August. |
Seoul's city council said it created unfair competition for taxi drivers, but Uber said the comments indicated Seoul remained "trapped in the past". | |
'Sharing economy' | |
Uber, one of a growing number of smartphone apps to enable ordinary people to share services such as spare rooms, meals and lifts, is shaking up taxi services in many cities. | Uber, one of a growing number of smartphone apps to enable ordinary people to share services such as spare rooms, meals and lifts, is shaking up taxi services in many cities. |
In a statement, Seoul city council said: "We are looking into related laws to block Uber and similar apps that arrange such illegal transportation activities. | |
"Uber is charging customers while avoiding the regulatory process, which creates unfair competition for taxi drivers." | |
In a statement, Uber said: "Comments like these show Seoul is in danger of remaining trapped in the past and getting left behind by the global 'sharing economy' movement." | |
Asia push | Asia push |
In South Korea the company currently operates only a luxury service, which is significantly more expensive than Seoul's traditional taxis. | |
Uber said it only used registered limousine companies to provide this service and that all drivers complied with safety regulations and were fully insured. | |
Over the past year Uber has been introduced in Singapore, Bangalore and Hong Kong. It began in Beijing last week. | |
But traditional taxi drivers in many cities have criticised authorities for allowing the more lightly regulated trade. | But traditional taxi drivers in many cities have criticised authorities for allowing the more lightly regulated trade. |
Recently, licensed taxi drivers across Europe and in the US staged protests against the company's regular service, which links private individuals with potential passengers. | |
Cab companies say these services are undercutting their business. A Belgian court has ruled the app illegal there. | |
The criticism does not appear to be damaging the company's fortunes. In June it raised $1.2bn in new capital on terms that valued it at $18bn (£10.5bn). | |
Uber currently operates in 150 cities in 41 countries in the Americas, Europe, the Middle East Africa and the Asia-Pacific. |
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