Uber Collaborates With Hyundai Motor Company In South Korea
Uber struggles to keep the business alive by collaboration in the country.
Uber collaborates with the South Korean automaker, Hyudai Motor Group, in an attempt to survive in the state, where local technology leader, Kakao, and opponent cab drivers have previously targeted it.
Financial Times reported that the taxi company has been opposed in the South Korea, and in a number of markets, such as Germany and Australia, from cab operators and governments who claim that it has violated local regulations through its premium UberX transportation service, which lets common vehicle owners accept fares.
Uber news exclaimed that in March, Seoul prosecutors discontinued UberX’s operations in the region after less than two years of service, pursuing CEO Travis Kalanick’s indictment. This left two services, viewed as secondary to the transporter’s business: Uber Taxi, utilized to offer common cabs, and Uber Black, which shared rides in luxurious automobiles through collaboration with local limousine enterprises.
Uber technologies informed that South Korean regulations to secure cab operators indicate that limousine services could only be employed by specific sections of the society, such as government officials, foreigners, and disabled people.
The ride-sharing company stated on Wednesday that it would be launching Uber Black later this year using with authorized cab drivers, which means that it could now be availed by all South Koreans. It stated Hyundai Motor Group’s division would provide concessions on its K9 luxurious sedan to cab drivers who logged up for the facility, which would employ navigation application created by one of the Seoul-based company’s subsidiaries.
Uber news today affirmed that the Seoul’s city government, which earlier criticized the company for illegitimate operations, welcomed the renovated service as “a real benefit for citizens, especially at times and at locations. . . when other transport options are not so readily available.”
The taxi company is troubled by an uphill war to win its market share back in the taxi market from the local enterprise, Kakao, which is known for offering a service utilized by 75% of the South Koreans. Last week, it introduced Kakao Taxi Black, a flagship service similar to the anticipated new Uber Black’s model, with an original fleet of 200 Lexus and Mercedes vehicles that it plans to grow depending on the demand.
Uber customer service reported that following the introduction of Kakao Taxi in March, an application known for letting users hail common taxis, has listed 160,000 out of 300,000 authorized motorists.
It could be assumed that the tie up would ease Uber’s difficulties in the competitive market.
