BILL OVER VAN-HAILING SERVICE “TADA”

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Apart from an ongoing trial to determine whether the van-hailing service Tada is illegal, a separate legislation is being discussed in parliament aimed at banning the app-based mobility platform. If the bill is approved, Tada will completely lose its ability to sustain its operation.

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The van-hailing app Tada first began service in October 2018. It takes pride in its clean and friendly service and the fact that no ride request can be turned down. Membership has grown to 1.3 million. However, there are threats to Tada's survival. In addition to the firm's ongoing legal battle with the prosecution, a revision to a passenger transport law is being reviewed in parliament. The revision calls for restricting the use of rental vans with over 11 seats and a separate driver only for tourist purposes and should last for over 6 hours. Italso calls for such vehicles to be rented or returned at airports and harbors. If the bill - dubbed the Anti-Tada Law - is passed, Tada will no longer be able to operate its current service. Lee Jae-woong, the CEO of SoCar which operates Tada, strongly protests the bill for banning innovative mobility platforms. He says it only allows innovation within the existing framework of taxi operations. However, the bill is garnering support from both ruling and opposition parties and if a parliamentary subcommittee is convened for a vote, it's most likely to be approved. Both the government and parliament are not on Tada's side, putting the service in jeopardy.

[Soundbite] KIM DEOK-JIN(KOREA INSIGHT INSTITUTE) : "There should be alternative solutions but discussions are focused on a dichotomous approach, leading to a failure on reaching a compromise."

If the revision passes, similar services will also be affected. As Tada faces such hurdles, its rivals such as Kakao Mobility are raising their market profile through successive takeovers of taxi firms.