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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] A dispute between Uber’s taxi service in Korea and local taxi associations over a new fee policy has temporarily eased following mediation by the Ministry of Land, Infrastructure and Transport.
According to industry sources on April 7, Uber Taxi Korea plans to hold a briefing session this month with four major taxi associations to explain its revised commission structure. The move comes after the ministry urged Uber to strengthen communication with the taxi industry.
The controversy stems from Uber’s announcement on April 2 of a new “distance-based commission” system, set to take effect on June 5. The plan replaces the existing 2.5% franchise fee with a model that charges all drivers—regardless of affiliation—based on trip distance.
Uber views the change as a strategic move to compete with Kakao Mobility, the dominant player in the Korean market. The company expects the new model to benefit both drivers and the platform, particularly in a market with a high volume of short-distance trips.
However, taxi groups have strongly opposed the plan, arguing it was introduced unilaterally without proper consultation. Non-affiliated drivers, who previously paid no commission, have expressed particular concern, along with drivers focused on longer-distance routes such as airport trips.
Taxi associations have submitted formal complaints to the transport ministry and the Korea Fair Trade Commission, urging a rollback of the policy.
With Uber now preparing direct talks, attention is focused on whether both sides can narrow their differences and reach a compromise.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
