Taxi drivers call on ride-hailing service Tada to cease operations

National 16:45 October 29, 2019

SEOUL, Oct. 29 (Yonhap) -- A taxi industry body urged Tada, a ride-hailing service, to terminate its business on Tuesday, a day after prosecutors indicted the company's heads on charges of running a transportation business without a license and declared the app-based business illegal.

In a joint press conference with independent lawmaker Kim Kyung-jin, Kook Chul-hee, chief of the Seoul Private Taxi Association, said "the prosecution's indictment brought the illegality of these taxi operators to light."

Kim and Kook also asked the government to suspend Tada's operation, which it claims has made a mockery of law and order, saying it would be dereliction of the government's duty if it did not do so.

On Monday, prosecutors said Lee Jae-woong, chief executive of car-sharing app operator SoCar, and Park Jae-uk, chief executive of its rental car hailing service unit, Value Creators & Co. (VCNC), will face trial without physical detention. VCNC operates Tada service.

The taxi drivers association filed a complaint against the two businessmen in February.

Tada was launched in October 2018 and has rapidly grown to become Korea's leading ride-offering service. It operates mostly in the Seoul metropolitan area.

Taxi drivers claim that Tada threatens their livelihood and violates transportation law that forbids rented vehicles from offering rides in exchange for money.

Tada argues its business is within legal boundaries based on a written exception that specifically allows rented vans - or vans with 11 to 15 seats - to be offered with drivers.