HONG KONG: Uber Halts Taxi And Van Services

Uber is putting the brakes on its taxi and van ­services in Hong Kong, effective from Monday, citing the need to shift focus to the ride-sharing business and phase out underused services.

The decision comes hot on the heels of Uber’s plan to pull out of the Macau market on September 9 due to an increasing crackdown on the operator by the enclave’s government.

But Hong Kong’s taxi trade yesterday noted that instead of pulling out of the city, Uber was expanding its ride-sharing ­services, which posed a bigger threat to their business.

A spokesman for Uber in Hong Kong said local taxi and van services – both deemed as “non-core business” for the popular ride-hailing firm – would be available only until Sunday. However, the company will continue providing its other ride-sharing platforms.

“We are realigning our offerings to focus on the ride-sharing options on our platforms UberX and UberBlack, which are used by the vast majority of riders and drivers, and part of the realignment is that some options that are not as commonly used will be phased out,” the spokesman said.

“Ride-sharing services are Uber’s core business and represent the overwhelming majority of rides in Hong Kong.”

He expressed hope that the realignment would allow Uber to improve services for its “rapidly growing” rider and driver base.

In a text message to Uber drivers, the firm informed them of the decision and invited them to sign up for UberX and UberBlack. The former offers smaller car models at more affordable rates compared with the existing UberBlack line and its luxury cars.

Earlier, the firm ramped up its push for new drivers and passengers with an advertising blitz.

Chau Kwok-keung, spokesman of the Anti-Taxi Franchises Concern Group, said Uber’s move meant the firm was going to be more aggressive with the expansion of UberX and UberBlack. “For us it is bad news as Uber looks set to be aggressive in stealing our prime customers,” he said.

The government has been accused of foot dragging and ambiguity over the legality of Uber in the city. It has repeatedly said that it is illegal to carry paying passengers without a car-hire permit.

In August last year, seven Uber drivers were arrested for lacking permits and driving without third-party insurance, while ­police raided the company’s offices after complaints by local taxi drivers. Two of them were fined.

Earlier Uber ended its attempted conquest of the mainland’s taxi-hailing market after agreeing to sell up to its bigger rival, Didi Chuxing. The deal was for Uber to hand over its Chinese brand, operations and data in ­exchange for a 17.3 per cent stake in Didi and a US$1 billion ­investment.

SOUTH KOREA: Uber Partners With Kia For Premium Service Relaunch In Seoul

Calvin Kang (L), general manager of Uber Korea, and Cho Yong-won, head of the sales division at Kia Motors, stand by a K9 model ahead of the joint relaunch of UberBlack in Seoul on Nov. 11, 2015.

Uber, the controversial ride-booking mobile app, will make a fresh start in Seoul with its high-end version to be serviced on a popular Korean-made luxury sedan, its U.S. operator said Wednesday, seeking to set foot here for the second time after the business hit a snag due to opposition from the local industry.

Uber Technologies Inc. plans to relaunch UberBlack, the premium riding service, in South Korea by the end of the year, provided on the K9 model sold by the country’s No. 2 carmaker Kia Motors Corp., the company said in a statement.

Uber and Kia have clinched a partnership deal to roll out the revamped on-demand platform, the companies said, which comes after the government’s amendment on transport regulations in July that eased the entry barrier for high-end taxi services.

UberBlack drivers will be able to purchase a K9 at a special rate, as the service aims to boost the local transport industry, as well as offer the best service to consumers within the confines of local rules, Uber said.

The move is seen as a big compromise for the U.S. app creator, estimated to be worth US$50 billion that currently operates in over 50 countries worldwide, after its initial attempt to make a footing in Korea went south as it faced strong opposition from the local taxi industry.

Since its Seoul launch in 2013, Uber has been under intense public scrutiny as critics accused it of hurting the local business, with the government also disapproving the service.

The hostility has led the prosecution to indict Uber CEO Travis Kalanick and the head of Uber Korea on charges of violating transportation law, with the verdict yet to be delivered.

Its decision to resume part of its service through a tie-up with a Korean firm is expected to spur a fresh competition for the U.S. company versus Kakao Corp., South Korea’s top mobile platform operator, which just kicked off a similar premium cab-hailing app, KakaoTaxi Black, this month.

Uber said the existing UberBlack will stop operating starting next week in preparation for the relaunch, while the UberTaxi, its cheaper version, will continue business as usual.

Uber runs the two services only in South Korea, which are provided by licensed drivers. It suspended its ride-sharing mobile platform, UberX, in March, as it was regarded as an illegal service.