Uber taxi service "illegal" (updated)

Ride-sharing service Uber now wants to talk with Department of Land after it was accused of operating illegally in Thailand and, as a result, having its drivers face heavy fines for using improper cars and fare structures.

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There may now be a problem with Uber's partnership with Citibank in which Uber provides transportation to the bank's partner eating establishments. CITIBANK photo.

Sunday update

Uber ready to 'engage with authorities'

Online reporters

The ride-sharing service Uber, facing a possible ban in Thailand, says it is willing to work with local authorities to improve urban transport services.

The company made the offer in a conciliatory statement issued on Saturday after the Land Transport Department warned people not to use the service.

The department cited safety as its main concern, saying some Uber vehicles and drivers were not properly registered to provide public service. The unspecified consequence of this is that if an accident occurs during such a ride, the passenger will not be covered by insurance.

As well, it said Uber's fares and credit-card payment method were not in line with the standards laid down by authorities and could pose a risk for users.

Uber responded that it offered a perfectly safe service and stressed that it would agree to abide by Thai laws.

"We respect and welcome the opportunity to engage with the relevant authorities to help them better understand the value we bring to the transportation ecosystem of Thailand," the statement said.

Uber did not say, however, whether it would continue to provide services in Thailand.

Saturday's story

Uber declared illegal in Thailand

Land Transport Dept cites improper fares, registrations, licenses

Online reporters

Uber's smartphone app.

Ride-sharing service Uber is operating illegally in Thailand and its drivers will now face heavy fines for using improper cars and fare structures, Department of Land Transport director-general Teerapong Rodprasert said Friday.

The department claimed Uber vehicles are improperly registered, charge fares not in line with regulated rates, utilise drivers without the proper licenses and discriminate against customers without credit cards.

Uber – which operates the premium Uber Black limousine-like service and the discounted Uber X service, which competes directly with taxis in Bangkok and Phuket – bills itself as an on-demand transportation provider. Rides are booked through smartphone applications or the Internet and paid only via credit card.

Mr Teerapong said the firm was improperly using cars with green-lettered license plates – similar to airport limousines – and personal vehicles with black-lettered plates. Thus the drivers were using the cars in a manner contrary to that stated in their registrations.

The department also alluded to safety fears and "hidden costs" associated with Uber cars because they are not registered in the department's database.

The department on Friday launched a crackdown on Uber drivers, saying those stopped by police could be fined 2,000 baht for using the wrong vehicle, 1,000 baht for not charging approved fares and 1,000 baht for not having a public-vehicle driver's license.

Journey completed.

The department further objects to the credit card-only method of payment in Thailand, as it has concerns about transaction security.

Officials have held a meeting of different government agencies to consider how to prevent future problems that may arise from Uber services.

In the meantime, Mr Teerapong said, the Land Transport Department will encourage the public to use regular public taxis.

Now operating in more than 100 cities worldwide, Uber has come under increasing scrutiny and restrictions from governments being pressured by domestic taxi operators. Cities in Germany have outright banned the service while Uber launched its Paris service this month in defiance of a court order.

In Southeast Asia, Indonesia has raised questions over Uber's tax payments and Malaysia's Road Transport Department warned the users they would not be covered by insurance if involved in a crash. Both Indonesia and Malaysia also threatened to detain Uber drivers if they did not obtain taxi-driver licenses. Singapore, meanwhile, has announced the implementation of new rules for third-party taxi booking apps, including Uber and GrabTaxi.

In nearly every country where Uber is under pressure, taxi drivers facing new high-tech competition are the ones shouting the loudest.

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