Uber suspends UberX in Seoul following ongoing tensions with government

Uber announced today it will suspend operations of UberX, its ridesharing service, in Seoul. The company did not give an expected timeframe for relaunch.

“After consulting with Seoul City Transport Division, and taking their advice, we determined it was in the best interests of Korean riders, drivers and the community as a whole to further define our business offerings within the current confines of the regulatory framework, without ambiguity,” reads an official statement from Uber. The company adds that it will provide taxis in Seoul with “free access” to Uber. UberTaxi, its cab-centric service tier, has been available in the city since October.

Now, when consumers and Seoul attempt to book an UberX vehicle, they’ll see the following message.

UberX’s closure in Seoul marks the second of its kind in Asia. In December, Uber ceased operations entirely in Delhi following a tragic rape incident that made waves in international media. About one month later, it returned to the city, this time with a newly-introduced panic button embedded inside its app.

Government agencies in other cities have at various points shook their fists at Uber, and in most cases, the company has continued to operate as usual.

Seoul, however, always stood out as a city with a vendetta (whether deserved or not) against Uber, if only for the seemingly extreme measures it took towards the company. Municipal authorities first called for a ban on the app last July, about one year after it first arrived in South Korea. That’s par for the course for Uber. But months later, the government indicted CEO Travis Kalanick and offered bounties of KRW1 million (about US$905) to citizens who help apprehend Uber drivers. Earlier this week Uber made UberX available to passengers free of charge – but if that marked an attempt to win over consumers or authorities, it has not succeeded.

Curiously, Uber’s statement following its suspension lacks much of the rhetoric that once characterized its press releases. There’s no mention of how Seoul’s actions “fly in the face of innovation,” or claims of how Uber makes transportation safer and improves the economy. Instead, the closing part of the message rings of humility:

Largely due to the leadership and courage of the Transport Division, many divergent views have been refocused, and united into a singular path forward.  This has resulted in the proposals being discussed with the Taxi Industry.  We stay committed to cooperate to reach a compromise with the City and Taxi Industry, and look forward to working together to bring regulated options to Seoul.

Those who accused Uber’s PR tactics of being too hostile might see this as a shift. But it’s impossible to know how to what extent the statement’s tone and content reflects the real relationship between Uber and Seoul’s taxi industry. Judging by the bounties, it’s likely not friendly. But PR fluff aside, Uber has already made it clear it will fight to win in every market it enters.

Editing by Paul Bischoff, top image by Tyler Durden, app screenshot by Nathan Millard