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The decision comes after Taiwan parliament passed a law that could fine Uber drivers up to US$780,000
A few months after Taiwanese regulators moved to give Uber the boot, the US-based ride-hailing giant has shut down its service in the country effective February 10.
In a blog post calling the move a “pause”, Uber accused the Taiwanese government of moving “further and further away from embracing innovation and setting the stage for a 21st century transportation policy”.
We at e27 have reached out to Taiwan’s Ministry of Transportation and Communications and will update with their statement.
Uber and the Taiwanese government have had a confrontational relationship for at least half a year, but disagreements peaked in December when parliament voted to raise fines against unlicensed services.
A driver that is punished could face a maximum fine of US$790,000, making it the world’s steepest fine. Uber pays for its driver’s fines and according to The Straits Times has racked up TWD1.1 billion (US$35.4 million) in the month-plus since the legislation went into effect.
Also Read: Taiwan moves to boot out Uber and UberEATS
In the blog post, the company hinted that the decision to press pause could be a negotiation tactic:
“In the face of this impasse, we must create a new path forward. Today, we are announcing our intention to pause our Taiwan service starting Friday 10th February. We hope that pressing pause will reset the conversation and inspire President Tsai to take action.”
Uber is fairly popular in Taiwan, and it will be worth watching how the public responds when the service is officially pulled.
There is one model for how a city that integrated — and then pulled — Uber from society adapts. In Austin, Texas, the ride-hailing service went ‘underground’, with organic Facebook groups replacing the service. Other companies, more willing to adapt to local regulations, also jumped-in to fill the void.
Also Read: [Updated]It gets worse: Taiwan is latest country to try and give Uber the boot
Uber operates in four cities across Taiwan and claims to have completed over 15 million rides in the country.
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Copyright: gyddik / 123RF Stock Photo
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