March 09, 2015 12:49
Online taxi service provider Uber said Friday it is halting its UberX service in Korea. The announcement came just 10 days after the company said it was launching the low-cost ride service here, initially for free.
UberX matches customers with private drivers who do not have commercial licenses.
But regulators here say the service is illegal and Seoul city officials have put up W1 million (US$1=W1,099) rewards to people who report private or rented car drivers offering transport through Uber.
"We stay committed to cooperate to reach a compromise with the city and taxi industry, and look forward to working together to bring regulated options to Seoul," Uber said in a statement.
The company decided to continue offering Uber Black services, which uses limousines owned by rental car companies, but only for foreigners and disabled passengers. The Uber Taxi booking service, which links cab drivers with passengers, will continue.
Uber, which was launched in the U.S. in 2009, now operates in 54 countries and has constantly clashed with local governments and transportation service providers.
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