Go to Contents Go to Navigation

Revision bill on banning Tada's taxi business passed at parliamentary committee

All Headlines 11:31 December 06, 2019

SEOUL, Dec. 6 (Yonhap) -- A National Assembly committee on Friday passed a revision bill on effectively preventing the controversial taxi business of Tada, a South Korean ride-hailing service operator.

The revision to the transport act, approved by the parliamentary transportation panel, restricts the outsourcing of drivers for the use of rental vans with 11-15 seats to tour purposes.

If signed into law, it would drive Tada out of its taxi business. The company launched an app-based ride-hailing service in October 2018 using 11-seat rental minivans and outsourced drivers. Tada means "to ride" in Korean.

A group of taxi drivers stages a rally in front of Seoul Central District Court, calling for the suspension of the Tada service, on Dec. 2, 2019. (Yonhap)

Existing local cab firms have ferociously accused it of running "illegal" and "unlicensed" services.

In late October, state prosecutors indicted Lee Jae-woong, chief executive of the car-sharing platform SoCar, on charges of violating legislation banning services carrying passengers for commuting with rented vehicles. SoCar owns Tada operator Value Creators & Company (VCNC). VCNC's chief executive Park Jae-uk has been also indicted.

A related court trial began in Seoul earlier this week.


Send Feedback
How can we improve?
Thanks for your feedback!