Uber announced today that it has suspended its UberX cab service in Seoul, following discussions with government authorities in the South Korean capital.
The company has faced trouble running its service in the city since July last year. As in many other markets, Uber’s business model doesn’t sit well with local transport regulations. It attempted to circumvent the issue by offering free rides in the city last week.
The decision to halt UberX was taken after the company consulted with Seoul City Transport Division. Interestingly, Uber is providing all taxis in Seoul with free access to its ridesharing platform.
This could be a move to try and get on the local government’s good side, or to get more drivers to try the platform for themselves and support the company’s cause in the future.
Uber says it is working with the local Transport Division to reach a compromise and launch a regulated taxi service in the city. In the meantime, the company will run its UberBlack cabs in Seoul, as they follow local rules.
➤ Suspending UberX [Uber Blog]