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S. Korea eyes no fleet cap for mobility platform providers

All News 14:56 November 03, 2020

SEOUL, Nov. 3 (Yonhap) -- A state panel on mobility innovation has proposed the government place no cap on the number of vehicles that new mobility platform business providers can operate, officials said Tuesday.

The proposal is part of the commission's policy recommendations aimed at helping nurture the new industry, following the passage of a related law earlier this year.

Under the recommendations, those mobility providers should be equipped with platforms for ride-hailing, reservations, fleet control and advance fare payments.

They should also own at least 30 taxies and vans with less than 14 seats, secure garages and buy insurance.

S. Korea eyes no fleet cap for mobility platform providers - 1

Would-be mobility platform providers will be allowed to apply for government approval after the law goes into effect in April next year, with the new service expected to debut during the second half of next year.

Mobility platform providers will also be obliged to pay basic contributions amounting to 5 percent of their sales.

The policy recommendations came seven months after the National Assembly passed a controversial revision to the passenger transport service act to launch mobility platform businesses and slap new regulations on Tada, a popular ride-hailing service.

The revision calls for restricting the outsourcing of drivers for the use of rental vans with 11-15 seats to tour purposes only.

Tada -- which means "to ride" in Korean -- was launched in October 2018 and has become South Korea's leading ride-hailing service. But taxi drivers have fiercely protested against Tada, condemning it as an illegal call taxi service.

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