UberX Shut Down In South Korea

Uber has announced that is has suspended its UberX service in South Korea, something that apparently took effect last night and is in relation to "a proposal to the Taxi Industry". Uber has long had troubles with regional authorities over how it operates, as well troubles with the taxi industry which has felt the squeeze as Uber gobbles up customers. UberBLACK will continue to operate in South Korea, however, doing so in conjunction with current law and regulations — something also said to be part of the proposal.

The decision is said to have come after "consulting" with the Seoul City Transport Division, which advised Uber in some unspecified way, and though the nature of those talks wasn't detailed, they apparently resulted in Uber electing to shut down its arguably biggest service.

Said Uber in a statement:

We determined it was in the best interests of Korean riders, drivers and the community as a whole to further define our business offerings within the current confines of the regulatory framework, without ambiguity...Largely due to the leadership and courage of the Transport Division, many divergent views have been refocused, and united into a singular path forward.

As part of this proposal Uber has ironed out in the region, Seoul's Taxis will be given access freely to Uber's platform, though what exactly that entails wasn't detailed. Uber says this'll offer benefits towards both taxi drivers and the traditional taxi companies, two of the ridesharing service's biggest foes.

SOURCE: Uber Blog