Setback for Uber as South Korea Bans Private Taxis

In a largely symbolic move that appears to be aimed directly at Uber’s cheap UberX service, South Korea passed legislation on Friday banning unlicensed drivers from providing taxi services — becoming the first country to institute a nationwide prohibition of the practice.

According to Reuters, the bill is a blanket ban on private taxi services but lawmakers who pushed the bill did so citing UberX, a service that matches commuters with individuals using their personal cars as a taxi.

Uber already pulled UberX out of Seoul in March because of backlash from the taxi industry and local authorities. But the company still maintains a presence via UberTaxi (matching passengers with licensed drivers) and UberBLACK (which can be used by the disabled, elderly and foreigners).

[Reuters]