Uber Taxi between convenience and illegality

"I’ve been waiting for a cab for 30 minutes, it’s so annoying." Everyone might have experienced this situation. Travis Kalanick, a thirty-something venture businessman, built a business out of this experience. The UCLA graduate majoring in computer engineering developed a smartphone application that connects cab drivers and passengers. This is the "Uber Taxi," which is gaining popularity around the globe.

If a user opens the Uber app on the smartphone and locates himself/herself, a nearby taxi driver’s face pops up. Ratings of previous passengers who rode the same taxi are also shown. After clicking the driver, a text message is sent to notify that the taxi would arrive in five minutes. There are various Uber programs including Uber Black to provide a high-end limousine service, Uber X serviced by ordinary car owners and Uber Taxi serviced by taxi drivers. Passengers can catch a taxi easily by one click on the smartphone and drivers can earn money in spare time. It is so-called "sharing economy" in the economic jargon. Well-known American businesses led by Google and venture capitalists have invested in Uber. Only in four years since its launch in 2010, Uber has spread into 200 cities around 40 nations and grown into a business with market valuation of 20 trillion won (approx. 18.2 billion U.S. dollars).

Strong opposition has followed around the world, however. The taxi business, of which sales would be directly affected by Uber, strongly protested. Governments have also started to fend off Uber from the market since the illegal "pseudo-taxi" driven by drivers without proper taxi driver license may threat the passengers’ safety. It is also hard to get insurance in case of an accident. In Korea, Rep. Lee No-geun of the ruling Saenuri Party tabled a bill to ban Uber. The City Council of Seoul also set up regulations to give rewards to a person who reports on illegal taxi business.

However, only few seem to believe that the Uber service can be blocked forever. When German courts in major cities such as Berlin and Hamburg became the first European courts that gave the operation prohibition order to Uber, U.K. Financial Times criticized, “Germany says `Nein` to Uber taxi app. Ban on taxi tool epitomises the failure to reform services.” German courts recently withdrew their operation prohibition order. Historically, many innovative technologies or products had been illegal. Innovative services are not something to block unconditionally. Uber also needs to make efforts for co-existence with existing industries. That’s how Uber can grow its root in the society.