Ride-hailing service provider Uber Technologies Inc could be banned in Taiwan after authorities accused it of operating illegally, with officials yesterday saying a final decision would be handed down next week.
It is the latest setback for the US company, after it was forced to suspend its operations in Hungary last month and was fined in June for operating illegally in France.
Uber entered the Taiwanese market in 2013, and the company and drivers together have already been fined a total of NT$65 million (US$2.05 million), according to the Ministry of Transportation and Communications.
Angry taxi drivers last month surrounded the legislature in Taipei, demanding the government kick Uber out, echoing similar protests in several other countries.
Authorities say Uber does not have the proper registration to operate as a taxi service.
“They [Uber] are registered as an information services provider, but what they are doing is actually transportation,” ministry spokesman Lin Kuo-hsien (林國顯) said.
That leaves consumers unprotected, Lin said, adding that some Uber drivers have already had their individual licenses suspended and are subject to fines of NT$50,000.
The Investment Commission, which screens and approves foreign and outward investments, yesterday said it would decide on Uber’s case by Thursday next week.
“From a preliminary assessment, it is possible” Uber will be banned, commission Executive Secretary Emile Chang (張銘斌) told reporters.
“It is what the Ministry of Transportation recommends. However, we have yet to come to a final conclusion,” he said, adding that Uber could appeal any decision.
Uber Taiwan general manager Gu Li-kai (顧立楷) said the company hoped authorities would “rule in favor of innovation” and “open a meaningful dialogue with Uber.”
“We want to work with the Taiwanese government to help them understand the role of technology in creating economic opportunity and meeting the transportation needs of Taiwan,” Gu said.
The US start-up has expanded to more than 50 countries and is worth about US$50 billion, but has faced multiple legal challenges and protests from traditional taxi drivers.
Uber in June announced it was suspending operations in Hungary, saying new legislation made it “impossible” to operate.
The fines in France followed violent protests by established taxi drivers.
In China, Uber on Monday agreed to partner up with ride-sharing giant Didi Chuxing (滴滴出行), ending a ferocious battle between the two.
Didi Chuxing is to take over Uber’s China operations in exchange for a stake in the Chinese company, with the combined firm expected to be valued at US$35 billion, according to Bloomberg News.
Additional reporting by Reuters
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