Taiwan says set to order Uber to exit market

Record ID: 92407

  • Title: Taiwan says set to order Uber to exit market
  • Date: 5th August 2016
  • Summary: TAIPEI, TAIWAN (AUGUST 4, 2016) (REUTERS) REAR-VIEW MIRROR SHOWING 24-YEAR-OLD PART-TIME UBER DRIVER, LUKE LAI'S FACE VARIOUS OF LAI DRIVING TRAFFIC ON TAIPEI STREET LAI'S CAR COMING TO HALT (SOUNDBITE) (Mandarin) 24-YEAR-OLD PART-TIME UBER DRIVER, LUKE LAI, SAYING: "For me, I feel very surprised. Because, to be honest, Taiwan's government focus should be on improving the service quality for drivers of taxis, also called 'little yellows,' and not terminate Uber's investment activities in Taiwan. As an entrepreneur myself, I think this is an unreasonable situation."
  • Embargoed: 20th August 2016 10:07
  • Keywords: Taiwan uber market taxis drivers
  • Location: TAIPEI, TAIWAN
  • City: TAIPEI, TAIWAN
  • Country: Taiwan
  • Topics: Government/Politics
  • Reuters ID: LVA0014TUMDN1
  • Aspect Ratio: 16:9
  • Story Text:Taiwan's Investment Commission said on Wednesday (August 3) it is set to order Uber Technologies Inc. to exit the domestic market.
    Union-backed taxi drivers have been urging the government to take legal action against the company, threatening to take to the streets in protest if their demands are not met.
    Taiwan's Investment Commission stated the Uber has misrepresented its business as an internet-based information technology platform rather than a transportation service and said a final decision will be made by Aug. 11. The commission oversees Taiwan's inbound and outbound foreign investments.
    According to local media, Taiwan's cabinet said the Transportation Ministry will work to make the company's services legal by next year so that Uber can cooperate will local taxi companies.
    Uber's ride-hailing app has become popular in Taiwan, providing drivers an opportunity to earn money on the side. Luke Lai, who runs his own company and takes passengers in his free time, expressed disbelief about the possibly decision to ban the service.
    "For me, I feel very surprised. Because, to be honest, Taiwan's government focus should be on improving the service quality for drivers of taxis, also called 'little yellows,' and not terminate Uber's investment activities in Taiwan. As an entrepreneur myself, I think this is an unreasonable situation," he said.
    Representatives of Taipei City's taxi drivers' union delivered a petition to the prosecutor's office on Thursday (August 4), claiming that Uber has conducted illegal business in Taiwan.
    "Our Ministry of Transportation and the Fair Trade Commission have already fined Uber Taiwan. But Uber Taiwan often claims that they have no relationship with the international Uber B.V. company. But Mr. Likai Gu, who has acted as Uber's general manager for the Taiwan region, has been conducting illegal activities and illegal operations," said Cheng Li-chia, the union's president.
    Taxi drivers perceive Uber as a threat due to the often lower prices and lower threshold for new drivers to join the service.
    "Their (Uber drivers) threat to us is that they don't need to take an exam, don't need (commercial) license and certification. They are just some drivers without (commercial) license out on the streets, also their price is lower than ours. This has a severe attack on us taxi drivers, of course we hope that the government ends their behaviour as soon as possible. Otherwise, for fairness, let them take tests for commercial license and business registration certificate, and then fairly compete with taxi drivers again. This we will welcome. But if you don't have a (commercial) license, us taxi drivers have a great dislike (for that)," said Mr. Fu, who says his income has taken a hit since the arrival of Uber in Taiwan.
    "Because Uber drivers own their own cars, the cars are cleaner and of better and more reliable quality. I have experienced taxi drivers often picking their noses and eating betel nuts, and there is always an odour. Then sometimes, I have done this before, when they want to give me change, I don't want that 10 (Taiwan) dollars after they finished picking their noses, just forget it. So I'd rather choose Uber. If there is no more Uber, I will be very disappointed," said Zoey Su, a Hong Kong citizen living in Taiwan.
    The company entered the Taiwan market in 2013.
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