U.S. start-up Uber Technologies announced on Wednesday that it will make its uberX ride-sharing app service available free of charge in Seoul, in its second attempt to operate legally in South Korea.
Uber started charging users for its taxi-like service last year, which allows passengers to find private drivers who don't hold commercial transport licenses through a smartphone app, according to Reuters.
Uber's chief executive, Travis Kalanick, and Uber's South Korea unit were indicted by prosecutors for violating a law prohibiting individuals or firms without proper commercial licenses providing or facilitating transportation services.
"We want to actively work towards a consensus, and the first step to that process is switching off the fare," Uber's head of north Asia Allen Penn said in a statement.
The app company proposed a new registration system for drivers in South Korea earlier this month in an attempt to operate legally. They were denied by the transport ministry shortly after however, who said it would stop the company from offering its services.
Uber has been the subject of a similar regulatory complaints in several countries around the world as it expanded into 290 different cities. The company is fighting bans in South Korea, France, Spain and India over violations that include using unlicensed drivers.
Back in January, the city of Seoul announced that Uber's services were illegal and started offering rewards to those who reported private drivers providing transportation through the company. Rewards can add up to 1 million won ($911).
Yang Wan-soon, director of the Seoul city government's taxi and logistics division, said to Reuters that the courts will decide if Uber can run legally or not.
"The city also needs to consider whether the free taxi service would disrupt existing market order," Yang said.
Make sure to check back with AutoWorldNews once a decision has been met.
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