Taiwan proposes using Uber to offer services in rural areas
Taiwan's Ministry of Transportation and Communications (MOTC) has underscored its position that ride hail service Uber "must be regulated by government", but has caused an outcry among taxi companies after suggesting Uber could offer its services to rural customers, where the transport infrastructure is less robust. The announcement sparked a backlash, with Taipei City Professional Drivers’ Union president Cheng Li-chia saying he found the ministry's logic "baffling" and warning his union would "expose the lies" being told by Uber.

Firms question wisdom of using Uber in remote areas

SERVICE: The feasibility of using Uber in remote areas where public transport is inadequate can be studied, the Ministry of Transportation and Communications said

By Shelley Shan / Staff reporter





Taxi companies questioned the feasibility of allowing Uber to serve people living in the nation’s remote areas that lack public transportation services, saying it does not change that it is an illegal operator that might not adequately protect the rights of the passengers.

The Ministry of Transportation and Communications (MOTC) delivered the proposal after Uber director of public policy for the Asia-Pacific region Damian Kassabgi met with MOTC Minister Hochen Tan (賀陳旦) on Friday.

Uber reportedly expressed its concern over penalties for illegal taxi operators, who face fines up to NT$25 million (US$781,150) following an amendment to the Highway Act (公路法) that took effect earlier this month.

The ministry issued a statement following the meeting between Hochen and Kassabgi, saying its position on Uber remains unchanged that it must be regulated by the government.

Uber must also pay revenue tax and insure its passengers, the ministry said.

The ministry said that it does not find it reasonable to allow individual drivers to use their own cars to provide for-profit ride-sharing service in metropolitan areas, because public transportation systems have already been established in these areas.

“We could study the feasibility of using the ride-sharing service model developed by Uber in remote areas, where public transport is inadequate in meeting the needs of the people, so long as the company expresses an interest in doing so,” the ministry said, adding that Uber could help reduce the costs of operating public transport systems in remote areas.

Japan has permitted a ride-sharing service using private cars in Kyotango City, Kyoto Prefecture, which does not have sufficient public transport services to meet the demands of local residents, the ministry said, adding that Uber could provide the ministry with similar examples for reference.

Taipei City Professional Drivers’ Union president Cheng Li-chia (鄭力嘉) said the first question is how the ministry defines “remote areas.”

“In Japan, they use licensed taxi drivers and vehicles registered to offer taxi services in the ride-sharing service. Uber, on the other hand, does not subject itself to any government regulation,” he said.

Cheng said that Kaohsiung has already used taxis in its public transport system in remote areas, as large passenger buses are unable to operate on some of the roads.

“Uber is considered an illegal operator when it offers service in Taipei, but does it become a legal operator if it offers rides to people in Hualien? How do you make sure that the rights of the passengers and legal taxi operators in Hualien are protected? I find the ministry’s logic baffling,” he said. “The bottom line is whether Uber is willing to serve people in remote areas. Does it really want to go there?”

Cheng said its union is holding a news conference today to expose the “lies” that Uber has been telling to the public.

Cheng said that Uber told people that they would be sued if they report Uber to the highway authority.

They also falsely assured Uber drivers that they can become licensed taxi drivers as long as they obtain the license for a rental car and a license of a professional driver, he said.

The Directorate-General of Highways said a legal taxi driver must have a practicing registration, in addition to a valid license of a professional driver, adding that the car they drive must be registered to offer taxi services.