May 28, 2015 / 10:12 PM / 2 years ago

S.Korea to ban taxi services by private drivers in blow to Uber

SEOUL, May 29 (Reuters) - South Korean lawmakers passed early on Friday a bill to ban taxi services provided by private drivers, making services like U.S.-based ride services company Uber Technologies Inc’s low-cost uberX service illegal in Asia’s fourth-largest economy.

South Korean parliament’s mobile app and video recording of the plenary session showed that the bill, which should take effect at the year-end, was passed. The legislation also explicitly bans firms like Uber from offering services like uberX, which match customers with drivers without taxi licenses for transportation services.

Uber had already suspended its uberX service in Seoul in March following backlash from authorities and taxi unions. (Reporting by Se Young Lee and Sohee Kim; Editing by Chris Reese)

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