KoreaTechToday - Korea's Leading Tech and Startup Media Platform
  • Topics
    • Naver
    • Kakao
    • Nexon
    • Netmarble
    • NCsoft
    • Samsung
    • Hyundai
    • SKT
    • LG
    • KT
    • Retail
    • Startup
    • Blockchain
    • government
  • Topics
    • Naver
    • Kakao
    • Nexon
    • Netmarble
    • NCsoft
    • Samsung
    • Hyundai
    • SKT
    • LG
    • KT
    • Retail
    • Startup
    • Blockchain
    • government
No Result
View All Result
KoreaTechToday - Korea's Leading Tech and Startup Media Platform
No Result
View All Result
Home government

Tada’s Expansion Face Hurdle on Ministry’s Concern

 1,719 total views,  2 views today

KoreaTechToday Editor by KoreaTechToday Editor
PUBLISHED: October 10, 2019 UPDATED: March 5, 2020
in government, SERVICES, Tada, transport
0
Rental van-hailing service Tada logo

Transport ministry expressed its concerns that Tada‘s expansion plan could lead to more disagreement with taxi drivers. The rental van-hailing service faces hurdles due to the ministry’s announcement.

Car-sharing app SoCar‘s subsidiary Value Creators & Company (VCNC), which operates Tada’s service, announced on Monday that it would expand the number of its vans from the current 1,400 units to 10,000 units. It will also increase that of contract drivers from 9,000 to 50,000 by the end of 2020

Tada, which mainly operates in Seoul and the surrounding metropolitan area, will expand its service to the whole country.

“There has been growing demand from Busan, Daegu, and other areas,” VCNC CEO Park Jae-uk announced during a press conference to celebrate the first anniversary of Tada’s launch.

The Ministry of Land, Infrastructure, and Transport said the transport platform operator’s plan was “inappropriate.” The statement was released after VCNC’s announcement. The ministry added that the plan could ignite controversy over the services and provoke more conflicts with taxi drivers. The concern came at a time when the government has been taking on actions to settle these and promote mutual growth between the new platform companies and conventional taxi.

Tada uses outsourced drivers and 11-seat Kia Carnival vehicles to provide its service to over 1.25 million users. The rental platform expanded its reach rapidly over the past year despite objections for taxi drivers.

VCNC stressed that it offers legal services amidst taxi unions calling the service “illegal.” The operator cited an enforcement ordinance under the Passenger Transport Service Act, permitting companies to provide drivers to rental vehicles with 11 seats or more.

The transport ministry announced in July a set of proposals saying it would pass legislative measures by the end of the year. The rules are to settle the intensifying conflict between the new mobility platform operators and conventional taxi service providers

The proposed measures included the government’s control of the number of taxi licenses that can be purchased and released to the mobility platform providers.

VCNC CEO Park expressed his disappointment with the measures. During the press conference on Monday, he said the core of the platform is the flexibility to supply the following demand.

“The government has moved to create laws calling them innovative measures, but there is a great possibility for such measures to become regulations that block new businesses,” he said. “More sufficient discussion will be necessary.”

The ministry stressed again that the additional services of the platform providers should be created within the limits of the new legislative measures. It said that it would seek to revise the enforcement ordinance of the Passenger Transport Service Act, which opened the way for the Tada service.

The ministry added that if the enforcement ordinance is revised, the Tada service will become illegal.

Regarding the ministry’s statement, a VCNC official said, “We will continue to consult with the ministry.”

What’s your thoughts?
+1
0
+1
0
+1
0
+1
0
+1
0
+1
0
+1
0
Tags: expansionSeoultadatransport service

Related Posts

LG spinoff, LX Group, establishes a fulfillment service platform with Korea's largest Logistics company Pantos, participating in the fast-growing e-commerce market. Photo shows fulfillment center of Pantos
Rental van-hailing service Tada logo
E-commerce

LG’s LX Group to Launch On E-Commerce Fulfillment Service with Pantos

June 24, 2021
Yogiyo, Korea’s second-largest food delivery service provider, draws preliminary bidders in its takeover bid, including major domestic retailers and PEFs.
Rental van-hailing service Tada logo
Food

Yogiyo’s Acquisition Bidding Attracts Major Korean PEFs and Retailers

May 6, 2021
Hyundai Motor Group announces they would participate in the construction of Air-One, the world’s first electric Urban Air Mobility hub for eVTOL aircrafts. / photo courtesy of Hyundai Motor Group
Rental van-hailing service Tada logo
Hyundai

Hyundai, Urban Air Port Establish First Electric UAM eVTOL Hub in UK

February 1, 2021
South Korea announces that it would allocate KRW 1.1 trillion ($997 million) for development and commercialization of level-4 autonomous driving project.
Rental van-hailing service Tada logo
Automobile

Korea to allocate KRW 1.1T For Level-4 Autonomous Driving Technology

January 25, 2021
Apple's EV concept car. (Apple)
Rental van-hailing service Tada logo
Automobile

Hyundai Motor in Negotiation with Apple for Apple Car Production

January 10, 2021
Car-sharing app operator SoCar and partner RideFlux will launch a test run for self-driving shuttle service in Jeju Island during this year’s first half. / photo courtesy of SoCar
Rental van-hailing service Tada logo
Automotive industry

SoCar, RideFlux to Test Run Driverless Shuttle Service in Jeju Island

January 8, 2021
No Result
View All Result

Follow Us

FREE NEWSLETTER




PRODUCTS

Most Popular

  • 5 Best Korean to English Translation Apps

    0 shares
    Share 0 Tweet 0
  • Top South Korean Tech Products to Look Out for in 2021

    0 shares
    Share 0 Tweet 0
  • Robots to help Police Patrol in South Korea

    0 shares
    Share 0 Tweet 0
  • 5 All-Time Best Rom-Com K-Dramas to Watch

    0 shares
    Share 0 Tweet 0
  • South Korea plans Urban Air Mobility Air Taxi services by 2025

    0 shares
    Share 0 Tweet 0
  • SK On to introduce South Korea’s first LFP Battery Prototype

    0 shares
    Share 0 Tweet 0
  • South Korea to commercialize Quantum Cryptography Communications

    0 shares
    Share 0 Tweet 0
  • Top Eight Promising EdTech Startup Companies in South Korea

    0 shares
    Share 0 Tweet 0
  • Netmarble subsidiary Metaverse Entertainment’s K-Pop virtual girl band MAVE has a smashing online debut

    0 shares
    Share 0 Tweet 0
  • Nexon To Reorganize Amid Failing Profits

    0 shares
    Share 0 Tweet 0
  • About Us
  • Account Page
  • application form
  • Cookie policy
  • Default Redirect Page
  • homepage
  • Login
  • login form
  • LogOut
  • Newsletter
  • Privacy Policy
  • Register
  • Reset Password
  • Sample Page
  • Subscription Plan
  • Terms of Use
  • test
  • test
  • testpage
  • TOS Page
  • Visitor Inside User Page

Copyright © 2023 KoreaTechToday | About Us | Terms of Use |Privacy Policy |Cookie Policy| Contact : press@koreatechtoday.com |

No Result
View All Result
  • Topics
    • Naver
    • Kakao
    • Nexon
    • Netmarble
    • NCsoft
    • Samsung
    • Hyundai
    • SKT
    • LG
    • KT
    • Retail
    • Startup
    • Blockchain
    • government

Copyright © 2023 KoreaTechToday | About Us | Terms of Use |Privacy Policy |Cookie Policy| Contact : press@koreatechtoday.com |