Seoul announced that it will ban the driving service app Uber in order to protect the city's taxi drivers.
The city's council said the decision was made to due to concerns about the service's impact on taxi drivers in the South Korean city, such as the need for background checks on drivers, traditional taxi trade, and keeping cars in good condition, according to BBC News. The council added that the service was operating illegally, creating unfair competition for taxi drivers.
Uber, which became available in Seoul last August, lets customers use a smartphone app to share different services, such as pickups, meals and spare rooms.
"We are looking into related laws to block Uber and similar apps that arrange such illegal transportation activities," Seoul city council said.
"Uber is charging customers while avoiding the regulatory process, which creates unfair competition for taxi drivers."
Uber responded to Seoul's decision by saying the city is ignorant about what the company refers to as innovation in transportation, the Wall Street Journal reported.
"Comments like these show Seoul is in danger of remaining trapped in the past and getting left behind by the global 'sharing economy' movement," the company said. A spokesman for Uber in Seoul said the car service was not illegal because Uber is "a technology company that connects drivers with passengers" and doesn't directly use rented cars.
Seoul also announced that it will release a new app for official taxis in December that will have features similar to those in Uber. Such features include geo-location data in nearby cabs, details about the cars and their drivers, and ratings for their service.
The decision in Seoul comes while Uber experiences criticism over its legality in other countries, BBC News reported. The app was ruled illegal in Belgium, and licensed taxi drivers in Europe and the U.S. recently protested against the service, arguing that it is undercutting their business.
Uber is currently available in 150 cities in 41 countries in North America, South America, Europe, the Middle East, Africa and Asia-Pacific. The service became available in Singapore, Bangalore and Hong Kong over the past year.
