Uber announced that it will suspend its service in Taiwan beginning Friday, 10th February following increasing government pressure in the country. The company didn’t mention when it will resume it operation but it hopes that the move will “reset the conversation” and help push through new legislation to legalize its service.
Uber has been under pressure over its legitimacy in the country for quite some time now, with regulators taking issue over its use of ‘unlicensed’ drivers. Tensions reached a peak in December last year, when an amendment raised the maximum fine for Uber drivers caught by authorities to T$25 million (est RM3.7 million) from an earlier range of NT$50,000-NT$150,000 (est RM7,000 – RM21,000). Earlier, in November, Uber has already been ordered to pay NT$134 million (est RM19 million) in alleged back taxes and fines in Taiwan.
While Uber is suspending its service, the company claimed that it has played on a number of areas, including consulting with the Ministry of Finance on the new cross-border e-commerce bill and expressed their willingness to comply; securing a local insurance policy; made several specific suggestions on ridesharing regulations that mirror laws overseas; and initiated efforts to collaborate with the taxi industry.
Uber first came to Taiwan four years ago, and since then, the ride sharing company has completed over 15 million trips in the country. However, unlike in all other countries it operates, Uber is considered as an internet-based technology platform in Taiwan rather than as a transportation company, which local taxi companies and Taiwanese authorities have said is a misrepresentation of its service.
Source: Uber via Lowyat.net
