TAXI-HAILING FEES TO BE RAISED

[Anchor Lead]

To solve the shortage of nighttime taxis, the government has decided to raise taxi-hailing fees to up to 5000 won. The Seoul metropolitan government is also pushing for a raise in taxi fares. Passengers have to pay more, but will it become easier to catch a cab?

[Pkg]

One out of three drivers of corporate taxis has quit since the pandemic began. To make them return to work, the government has decided to raise taxi fares. Nighttime taxi-hailing fees will be increased up to 5000 won. Currently platform companies pocket half of the taxi-hailing fees. The rest is split between taxi companies or their drivers. Changes are made to ensure nearly 90 percent of the raised fee goes to drivers. Taxi drivers working at night are expected to see their incomes grow by around 400,000 won a month. In accordance with government guidelines, when hailing fees are paid, taxi companies will prevent their drivers from turning down passengers by not notifying them of passengers' destinations or allocating cabs in a compulsory way.

[Soundbite] Won Hee-ryong(Minister of Land, Infrastructure and Transport) : "When platform companies are found to charge excessive taxi-hailing fees or commit violations, they will be required to take corrective measures."

Part-time taxi drivers will be allowed to work on Fridays and during night hours, when demand for cabs soars. Mandatory days off will be lifted. The government believes the measure will help increase the number of nighttime taxis in Seoul by about three thousand. However, passengers will have to pay higher fees. Night cab fees will start at 11,000 won because of raised taxi fares plus hailing fees. Drivers say that a 400,000-won increase in pay is not enough.

[Soundbite] (Taxi driver) : "As we get older, it’s harder for us to work. Young people will only do this when they are paid more. Taxi drivers should be paid as much as bus drivers."

Some say higher taxi fares will only benefit taxi companies.

[Soundbite] (Taxi driver) : "Taxi companies take all the profits. Drivers who quit are not going to return unless their wages are raised."

If the latest measure fails to help increase taxi supply, the government plans to speed up introducing platform services such as Tada or Uber.