In this June 25, 2013 file photo, William Rouse, the General Manager of Los Angeles Yellow Cab, at podium, takes questions from the media as hundreds of Los Angeles area taxi drivers circle City Hall in their cabs to protest unregulated ride-share services being promoted through smart-phone applications and social media in Los Angeles. The protest came one day after the citys transportation department issued “cease and desist” letters to companies such as Uber that allow consumers to book rides online with limo companies and private drivers. Uber promises to focus on rider safety amid increasing concerns that its drivers are not adequately screened for past criminal convictions. In a blog post Wednesday, Dec. 17, 2014, Uber’s head of global safety defended the company’s safety record but also wrote that “as we look to 2015, we will build new safety programs and intensify others.” AP
SEOUL, South Korea — South Korean prosecutors brought charges Wednesday against the US founder and CEO of smartphone cab service Uber and his Korean partner for operating an illegal taxi service, the latest in a string of bad publicity for the firm.
The prosecutors office said Uber’s global CEO Travis Kalanick and a local rental car service operator were indicted for violating a law governing passenger transport services.
Both were not detained, and it was not immediately clear whether Kalanick would visit Seoul for trial.
In South Korea, rental car service operators are banned from conducting passenger transport business using their cars. Violators face up to two years in jail or a fine of 20 million won ($18,150).
The Seoul city government has filed complaints with prosecutors, saying Uber’s operations raised passenger safety issues and threatened the livelihood of licensed taxi drivers.
City regulators have launched a crackdown on drivers and rental cars that cooperate with Uber. A financial reward of up to one million won was offered for those who report Uber’s activities.
California-based Uber is the most prominent of several smartphone apps that are shaking up the traditional taxi landscape in cities around the world.
It has already faced significant resistance from regulators in several countries, who accuse it of unfair competition and lacking in standards.
Uber has also sparked angry protests by cab drivers in France and other countries who fear it is chipping away at their client base.
It made headlines this month when an Uber driver allegedly raped a passenger in New Delhi.