From Agence France-Presse
South Korean prosecutors brought charges Wednesday against the US founder and CEO of smartphone cab service Uber and his Korean partner for operating an illegal taxi service, the latest in a string of bad publicity for the firm.
The prosecutors office said Uber’s global CEO Travis Kalanick and a local rental car service operator were indicted for violating a law governing passenger transport services.
Both were not detained, and it was not immediately clear whether Kalanick would visit Seoul for trial.
In South Korea, rental car service operators are banned from conducting passenger transport business using their cars. Violators face up to two years in jail or a fine of 20 million won ($18,150).
The Seoul city government has filed complaints with prosecutors, saying Uber’s operations raised passenger safety issues and threatened the livelihood of licensed taxi drivers.
City regulators have launched a crackdown on drivers and rental cars that cooperate with Uber. A financial reward of up to one million won was offered for those who report Uber’s activities.
California-based Uber is the most prominent of several smartphone apps that are shaking up the traditional taxi landscape in cities around the world.
It has already faced significant resistance from regulators in several countries, who accuse it of unfair competition and lacking in standards.
Uber has also sparked angry protests by cab drivers in France and other countries who fear it is chipping away at their client base.
It made headlines this month when an Uber driver allegedly raped a passenger in New Delhi.
© 1994-2014 Agence France-Presse
And the story from Bloomberg:
(Bloomberg) — Uber Technologies Inc. Chief Executive Officer Travis Kalanick was indicted in South Korea as China’s largest city pledged to crack down on its service in the latest instances of government scrutiny of the company.
Kalanick, Uber’s Korean unit and car-rental partner MK Korea were indicted yesterday by the Seoul Central District Prosecutors’ Office for flouting a local transportation law prohibiting rental cars from operating as cabs, according to an official at the department, who asked not to be named citing internal policy. The official declined to comment on whether prosecutors expect Kalanick to appear for questioning.
The southwestern city of Chongqing — the largest metropolitan area in China — will “strike harder” at those who operate illegal transportation services using car-booking software such as Uber, according to a statement posted on the website of the transportation commission.
The declaration follows a report by the official China News Service last week that law enforcement officials had raided a site used by the company to train new drivers. Uber is “actively communicating and seeking clarification” from the municipal government, it said in an e-mailed statement.
Uber became the most highly valued U.S. technology startup after a fundraising round this month valued it at $40 billion. The San Francisco-based car-booking company is coming under increased scrutiny worldwide as governments step up regulation of its car-sharing service, which licensed taxi operators call unfair competition.
Screening Practice
In Asia, the company’s screening practice was criticized after allegations that one of its drivers raped a woman in New Delhi, while Vietnam and Taiwan have declared its services to be illegal.
Evelyn Tay, Uber’s Asia Pacific spokeswoman, didn’t answer two calls to her office or immediately respond to an e-mailed request for comment on the indictment in South Korea, which was reported earlier by Yonhap News.
The company said in August it had sought a legal opinion and that its Seoul service obeys the law. Paid transportation with unregistered vehicles is “clearly illegal activity,” South Korea’s Ministry of Land, Infrastructure and Transport said later that month. – BLOOMBERG
