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Seoul City To Introduce Uber Rival Premium Taxi Service

An anonymous reader writes Seoul city has today announced that it will be launching a luxury taxi service this summer to rival the global cab-hailing app Uber, adding to the obstacles that the U.S.-based firm is currently facing in the Asian market. The government's move comes after the country's transport department rejected a proposal from Uber last week for a new driver registration, and enforced its stance against Uber operating in the area. The new premium service will be introduced in Seoul city in August with 100 luxury and mid-sized saloon cars. "We will provide a premium tax service which excels that of Uber..." the Seoul government said in a statement. It stated that a taxi association would be partners of the scheme to help establish the service, but added no detail regarding which company they would be working with.

50 comments

  1. So why is Uber is in difficulty? by Champaklal · · Score: 1
    It's good, that both of them would compete, and ultimately consumer would be supported!

    btw, some people live only by copying and finally build the whole economy on it :)

    1. Re:So why is Uber is in difficulty? by monkeyzoo · · Score: 2

      Seems like Seoul has missed the point. I don't think Uber is upending taxis worldwide because they are luxury! It's because they are cheaaaap!

      How will a luxury taxi service in Seoul affect the traction that a car-sharing service could gain by undercutting standard, economy taxi pricing? (Except that apparently they have banned them from operating. That sounds like an effective obstacle.)

    2. Re:So why is Uber is in difficulty? by Anonymous Coward · · Score: 0

      They aren't that cheap. Well, the base fare is cheap, but then they add 150% surge pricing to that. Taxi's at least keep the same price at 9PM and 3AM.

    3. Re:So why is Uber is in difficulty? by gl4ss · · Score: 1

      well it's 100% purely about protectionism in this case.

      You see, otherwise they wouldn't mention Uber in their press. Asians are stupid in that way that they don't understand public relations and when they're doing something fishy(competition or whatever wise) they _will_ make a public statement that they are not doing it, even if it makes no sense to make such statement, because it makes it just seem like that they're banning a competitor.

      if there's a public statement from some government figures for example that some prosecution case was not politically motivated, then its pretty certain that it was. and they will make that statement, even if they control the press!

      --
      world was created 5 seconds before this post as it is.
    4. Re:So why is Uber is in difficulty? by hEpen · · Score: 2

      They are missing many points about Uber. Two big ones are: It is fast because of their driver ubiquity. And their drivers have a reputation that matters because it follows their profile which has customer feedback. These are good.

      The downside is that this is austerity sock-puppetry saying, "We are not going to be building anymore public transit. Share your shit among the techno-poors instead."

    5. Re:So why is Uber is in difficulty? by stephanruby · · Score: 1

      They aren't that cheap. Well, the base fare is cheap, but then they add 150% surge pricing to that. Taxi's at least keep the same price at 9PM and 3AM.

      When the price is surging, even taxis are not available. And 100 extra luxury taxis won't even make a dent when the demand outstrips the supply during peak hours. In fact, since those new taxis are touted as saloons on wheels, they won't even be competing against regular taxis (that's probably why the government likes the service so much). They will probably be hired the entire night and they'll be clogging up the gangnam streets waiting for their patrons to get in and out of night clubs.

    6. Re:So why is Uber is in difficulty? by Anonymous Coward · · Score: 0

      Seoul is different. Based on two visits and three weeks there in total, I'd say that taxis are often cheaper than public transportation - at least for short distances. Furthermore, they have two "classes" of taxis and you shouldn't even think of taking a date in the cheaper one. No idea how Uber changes that mix.

    7. Re:So why is Uber is in difficulty? by ShanghaiBill · · Score: 1

      they add 150% surge pricing to that. Taxi's at least keep the same price at 9PM and 3AM.

      I would rather pay a surge premium than rely on a taxis that are cheap but unavailable.

    8. Re:So why is Uber is in difficulty? by Etherwalk · · Score: 1

      Seems like Seoul has missed the point. I don't think Uber is upending taxis worldwide because they are luxury! It's because they are cheaaaap!

      How will a luxury taxi service in Seoul affect the traction that a car-sharing service could gain by undercutting standard, economy taxi pricing? (Except that apparently they have banned them from operating. That sounds like an effective obstacle.)

      Is it Seoul, Seoul City, or are either acceptable? It sounds like saying Chicago City to me (i.e. the wrong proper noun), but maybe City is a part of the English name of it.

      Also, Uber won by not being unpleasant, not by being cheap. Cheap helps, but regular cabs often suck. Uber cars are clean, most of the drivers are nice-ish, they almost never give the customers a hard time, you don't have to wait long for them...

      There is a segment of the market that will buy by price--but most of the market that shifted to Uber did it because service quality is better.

    9. Re:So why is Uber is in difficulty? by Locando · · Score: 1

      "City" is part of the Korean name of it. It's an issue of poor translation. The only purpose it serves is to make clear that you aren't talking about the entire Seoul Metropolitan Area (but why would you assume that?).

    10. Re:So why is Uber is in difficulty? by blackraven14250 · · Score: 1

      About the Seoul City thing, I looked it up, because I was curious as well. It seems that Seoul's full name is "Seoul Special City", and the area around Seoul is the "Seoul Capital Area". I'm guessing he said "Seoul City" to make clear the service would be offered in the city proper, and would normally be translated with the "city" dropped from his statement.

    11. Re:So why is Uber is in difficulty? by Paradise+Pete · · Score: 1

      I thought it meant Detroit.

    12. Re:So why is Uber is in difficulty? by Anonymous Coward · · Score: 0

      Does it even matter is Seoul? Never been there, but I've been in that part of the world. Usually it was better to walk, take some kind of local rail transport, or take a "moped taxi". As car taxis could just sit there 2 hours because the traffic was jammed.

    13. Re: So why is Uber is in difficulty? by ihavnoid · · Score: 2

      I lived in Seoul for most of my life, and the only time I took taxis were either when I had a lot of luggage, or on late nights when there is no public transport. On daytimes the traffic situation is so bad that anything other than public transportation is just horrible. So horrible that I didn't even consider buying a car.

      Buses are on a better situation since they get to use bus only lanes(which are on pretty much every busy road), which are enforced using dash-cams on the buses themselves.

      Now I live on the outskirts of Seoul... and going any place on public transportation takes roughly 3x longer than driving. Ahh.. I miss Seoul.

    14. Re:So why is Uber is in difficulty? by ChunderDownunder · · Score: 1

      Detroit lost its seoul a few years ago.

      Detroit Rock City!

    15. Re:So why is Uber is in difficulty? by sociocapitalist · · Score: 1

      It's good, that both of them would compete, and ultimately consumer would be supported!

      btw, some people live only by copying and finally build the whole economy on it :)

      Sounds more like a "We like your idea Uber but fuck you because we're going to block you from the market and do it ourselves"

      No doubt the unknown company that they're going to work with will be owned by the transportation minister's uncle's cousin's favorite son.

      --
      blindly antisocialist = antisocial
    16. Re:So why is Uber is in difficulty? by wm2810 · · Score: 1

      The difficulty is right here, from that link:

      In January, Seoul city started offering rewards of up to 1 million won (£608) for people who reported private or rented car drivers providing transport through Uber.

      In December, South Korean prosecutors indicted Uber CEO Travis Kalanick and the company's South Korean unit for violating transport rules which require drivers and vehicles used in taxi services to be licensed.

    17. Re:So why is Uber is in difficulty? by dintech · · Score: 1

      Absolutely right. Seoul has very cheap taxis compared to other developed capitals and they are really everywhere. There is much less need for Uber there.

    18. Re:So why is Uber is in difficulty? by NotDrWho · · Score: 1

      I don't think Uber is upending taxis worldwide because they are luxury! It's because they are cheaaaap!

      They're also usually driven by drivers who actually give a shit about customers, not by assholes who think their taxi medallion is a monopoly that lets them treat customers like shit. Also Uber drivers do little things like cleaning their cars more than once a year, and bathing regularly.

      --
      SJW's don't eliminate discrimination. They just expropriate it for themselves.
    19. Re:So why is Uber is in difficulty? by Impy+the+Impiuos+Imp · · Score: 2

      Then why ban them? And then clone them?

      Some people are saying good, even more competition. Government running competition out of town on a rail to hand it over to itself and its crony taxis is not freaking competing! It's old-school corruption.

      It's why politicians seek office.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    20. Re:So why is Uber is in difficulty? by monkeyzoo · · Score: 1

      Thanks for the research!
      And, BTW, such a classic, funny Asian name. Just like Tokyo is officially named: Tokyo Happy Special Fun Town City.

    21. Re:So why is Uber is in difficulty? by monkeyzoo · · Score: 1

      There is a segment of the market that will buy by price--but most of the market that shifted to Uber did it because service quality is better.

      I'm assuming neither of us has done a proper customer market research survey to probe this (I haven't, but hopefully Uber has), but anecdotally, among the many people I know using Uber, the only reason I hear people cite for why they use it over taxis is price.

  2. When is Pyongyang next? by Billly+Gates · · Score: 1

    With all the great news and new sayings of the state media ahead of the 70th year Anniversary I am sure NK has to have such better service

    This coming from such a great airline service

  3. The Plot Quickens by SuperKendall · · Score: 0

    a taxi association would be partners of the scheme

    Well that about sums up what you'll get from THAT.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  4. Uber responds with its own premium service by Anonymous Coward · · Score: 1

    Uber responds with its own premium service.

  5. Easy to have competitors by GoodNewsJimDotCom · · Score: 1

    The software Uber uses isn't particularly complex. A lone coder could code it up very rapidly. The only thing it got going for it in terms of competition is that,"Why should people use a different service when this one works?" So if another country wanted to make an Uber competitor and ban Uber, they can do it very easily. Every different country could have its own version of a smart phone summoned taxi service and it wouldn't cost that much in term of dev hours to the profit gained for not using someone else.

    1. Re:Easy to have competitors by Anonymous Coward · · Score: 0

      The software Uber uses isn't particularly complex. A lone coder could code it up very rapidly. The only thing it got going for it in terms of competition is that,"Why should people use a different service when this one works?" So if another country wanted to make an Uber competitor and ban Uber, they can do it very easily. Every different country could have its own version of a smart phone summoned taxi service and it wouldn't cost that much in term of dev hours to the profit gained for not using someone else.

      Uber would never allow that to happen.

    2. Re:Easy to have competitors by Anonymous Coward · · Score: 0

      a smart phone summoned taxi service

      In my country we have developed the technology to summon taxis not only from smart phones but from dumb phones as well. We're that advanced.

    3. Re: Easy to have competitors by Anonymous Coward · · Score: 0

      That's nothing. In my country, the drivers don't even use their brains.

    4. Re:Easy to have competitors by BarbaraHudson · · Score: 1

      Uber can't stop it from happening, especially in cities that decide to create their own integrated app (public transit, walking, biking, taxi, ride-sharing) and regulate what goes on within their borders.

      --
      "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
  6. What by Anonymous Coward · · Score: 0

    I think this Seoul government's move doesn't understand where the Urber's business is.

  7. Taxes by dumky2 · · Score: 1

    There is an ironic typo in the op which tells you a lot about such municipal "competitors": "We will provide a premium tax service".

    --
    These comments are mine; I do not speak for my employer.
  8. It's quite alright to just call it Seoul by Anonymous Coward · · Score: 0

    even though you use the words 'forward slash forward slash' But that's how I felt when I read Seoul city twice

  9. Headlines are hard by Anonymous Coward · · Score: 2, Interesting

    "Seoul City To Introduce Uber Rival Premium Taxi Service"
    This, this makes no sense. Is Seoul introducing a rival to Uber called "Premium Taxi Service" (Koreanglish)? Is Seoul introducing an uber rival to premium taxi services? As Seoul introducing a Premium Uber Rival called "Taxi Service"? There are tens of ways I could go with trying to parse this.

    Clearly the problem is that someone, either an editor or the submitter, wanted to steal Reuters' sensible headline (Seoul city to launch premium taxi service to take on Uber), and took the high school plagiarism-avoidance tactic of jumbling up the words and using a couple similes so it's "original".

    Some suggestions for headlines that actually make sense, while reusing, rearranging, or recycling (the 3 Rs) most of the words in the current title. Replace "Seoul" with "Seoul City" or "Seoul Special City" or "the city of Seoul" at your leisure if you want to be less ambiguous:

    Seoul introduces premium taxi service to rival Uber
    Seoul to introduce new Uber rival
    Seoul introducing premium taxi service to rival Uber
    Seoul's premium taxi service to rival Uber
    Seoul to introduce premium taxi service to rival Uber
    Uber rival to be introduced by Seoul

  10. Liars by Karmashock · · Score: 1

    if their service would be better then Uber then why forbid Uber to compete?

    You either let them compete or you're afraid of them. And if you're afraid then you think they're going to out compete you. Which means you think they're better at providing the service then your native industry. And given that every driver would be a korean... and the pay for drivers is pretty good... who are you protecting?

    Not the consumer. The consumer is the one that would choose uber.

    Not the driver. Uber drivers are well paid and don't have to go into debt to buy a taxi medallion.

    The cab companies? I suppose you could be helping them but you're really just subsidizing their own unwillingness to adapt.

    Possibly the governments that like to charge fat medallion fees? That seems the most likely.

    So there you go. You're either screwing over the consumer to protect campaign donors or to protect local taxi registration extortion fees. Either way, you're assholes.

    --
    I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
    1. Re:Liars by gl4ss · · Score: 1

      because uber drivers would be cheaper, so they think they have to make this statement that the people will get a "better" service and that they're not screwing over the people. that's why they're mentioning uber.

      --
      world was created 5 seconds before this post as it is.
    2. Re:Liars by Karmashock · · Score: 2

      Except how is the government able to decide what is and is not better?

      Do I let the government decide what is a better pair of shoes or a better plate of food or a better house or a better hotel room? I'm sure they regulate all these things and sometimes even for good reason. But no one has a problem with a reasonable amount of regulation. The issue is that they are effectively inflating the cost of taxi service to either protect campaign donors or to protect extortionate fees they charge cab services.

      Either way, they're fucking over their consumer for their own selfish greed. Which means they're liars and assholes.

      If the "superior" service they were offering were really worth the extra money then there would be no reason to lock Uber out of the market. While I'm sure they're going to have a luxury service, they'll still over charge for it. That is the whole point. They're trying to protect an outmoded system using heavy handed government fiat powers.

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    3. Re:Liars by drinkypoo · · Score: 1

      What I found interesting is that Uber is now the competition. They're not announcing that they're creating a fleet which is superior to other cab companies, they're announcing that they're competing with Uber. They really couldn't have produced a better commercial for Uber if they tried.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  11. Good, let taxpayers share instead of Uber CEOs by ebusinessmedia1 · · Score: 1

    I'd like to see this happen in every municipality. Why not open up licensing for anyone to drive, with nominal fees? Make it cost neutral. Who needs Uber or AirBnB or any of these "sharing" apps that essentially create a race tothe bottom where ONLY the investors and owners win? Why should these sharing ideas only be private investor-run? I hope Seoul's service does well, and good for Seoul in limiting Uber's footprint!

    1. Re:Good, let taxpayers share instead of Uber CEOs by Anonymous Coward · · Score: 0

      There are non profit car sharing services. City CarShare is one.

  12. Taxi!!!! by Anonymous Coward · · Score: 0

    better taxis. Yipppppeeeeeeee!!!!!!!!

  13. Same thing in Vegas by Anonymous Coward · · Score: 0

    In Las Vegas the taxi mafia -- which is indistinguishable from the real Mafia -- is also standing up their own ride-summoning app to help suppress Uber.

    In other words there's an app, but you'll get the same shit-ass Vegas taxis.

  14. Busan City by Anonymous Coward · · Score: 0

    Or is it Pusan? SOmething out of Mission Impossible, the 60s version.

  15. Premium tax system, you say? by Anonymous Coward · · Score: 0

    "We will provide a premium tax service

    Yes, that about describes the protectionist bollocks that is most taxi licensing systems.

  16. Building a more luxurious horse carriage by NotDrWho · · Score: 1

    We in the carriage industry, while we do support the "automobile" ban, do recognize that you, the public, values some aspects of this new technology. Therefore, we are announcing an effort to build new and more luxurious horse carriages with much larger manure traps to meet your needs. We trust that these wonderful new carriages will prove much more popular than these dangerous, unlawful automobiles.

    --
    SJW's don't eliminate discrimination. They just expropriate it for themselves.
  17. I don't think anyone here has used a cab in Seoul by HBI · · Score: 2

    I have.

    The Seoul cab market is very competitive. There are certain zones (the UN base (mostly American) at Yongsan is one) where only one cab company has a monopoly, but otherwise there are many more cabs in Seoul than are in say, New York City, absolutely swarming the streets. The cab service is pretty awful most of the time, about on a par with NYC service, though the drivers are more polite in speech. Very rarely do they speak English even though it is very common in Seoul. It's honestly an encouragement to learn some basic Hangul. They chew nasty coffee grounds and have some pretty odious air fresheners in the cars. They can't find obvious things, things any driver in their home city should know.

    A dude in a car would be better in most cases. Therefore, this article makes a lot of sense to me.

    --
    HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
  18. Very cool news by Anonymous Coward · · Score: 0

    Not surprised at all. If any of you have been to Korea, you'll have noticed the cabs are already super plush high end versions of newish and older Hyundai's we know here in the states. The cab rates are already super low. This will be interesting to watch.

  19. Re:I don't think anyone here has used a cab in Seo by Solandri · · Score: 1

    They can't find obvious things, things any driver in their home city should know.

    A dude in a car would be better in most cases.

    Metropolitan Seoul has a population of 25 million. Furthermore, unlike New York City which is laid out in a nice grid, the streets in Seoul are a byzantine mess of turns, angles, and alleyways. Also, as per Asian custom, most of the streets don't have names - the destinations do. (Kinda like Squares in Boston - instead of the street being called Boylston St, it'd simply be called "To Copley Square".) I'm frankly amazed at how many streets the taxicab drivers there know. GPS is a convenience in the U.S., but it's practically required in cities like Seoul which originally grew organically without central planning.

    You also have to understand the historical pretext. South Korea, and Seoul in particular, has one of the highest population densities on earth. Of countries with more than 5 million people and excluding city-states, only Bangladesh and Taiwan have higher population density. Space, and especially road space is a premium.

    Back in the 1970s and early 1980s, they had a pretty good system. The government taxed cars so that the cost about $40,000 (about $90,000 in 2014 dollars) as a way to discourage car ownership. Instead, people were encouraged to take public transportation and taxis. Even traveling between cities was simple with an extensive express bus system with departures every 5 minutes between major cities. It worked pretty well - I hardly recall seeing any traffic jams during that time, and you could flag down a taxi literally within 30 seconds.

    All that fell apart n the late 1980s, one of the U.S. Presidential candidates made an issue of this tax. He complained that Hyundai was allowed to sell its cars in the U.S. for $5,000, while an equivalent U.S. car cost $40,000 in Korea. He conveniently omitted that the same Hyundai cost $40,000 in Korea as well. The huge uproar in the U.S. eventually led to the South Korean government repealing the tax in order to protect its fledgling overseas car sales industry.

    What happened next was predictable. Car prices dropped like a rock in Korea, and Koreans bought cars. Tens of millions of them. Way more than the road infrastructure could handle. The streets became parking lots. During the lunar new year, it wasn't uncommon for a 400km road trip to take more than 24 hours - as slow as a fast marathon runner. And not only did it negatively impact car travel, it also slowed down public bus transportation since they were stuck on the streets with the cars.

    During the 1990s and 2000s, Korea worked its ass off to expand and improve its roads to handle all these cars. It's still nowhere near as good as it was in the 1970s, but at least traffic moves now, with just the regular traffic jams like you'd expect in any modern urbanized country. There is no way in hell they're going to allow millions more drivers roaming the streets trying to make some extra pocket change with Uber.

  20. Re:I don't think anyone here has used a cab in Seo by HBI · · Score: 1

    I have spent a lot of time in Korea since 2007, but I didn't know much of that - I knew the Olympics had resulted in a lot of change, but not the tariff process stuff. Thanks for the enlightening post.

    --
    HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.