So I had discovered this video as I was binging YouTube, and it is incredibly intriguing. I highly recommend watching it, as it provides much better insight into the personal perspectives of South Korea’s citizens and taxi drivers.
While in North America and many other countries, Uber has been seamlessly adapted into modern society. Its translation to other countries within the East is far from its expected thriving prosperity.
While the reason’s differ from country to country, for Korea, its declining success is rooted within an already existing taxi industry. These taxi industries protest that Uber is taking away their jobs, and harming the lower-class.
Competition between an already struggling, and impoverished lower-class, the rising popularity of Uber, has led to violent protests, and tense political state. Like one where “Choi, a 57 year old” taxi driver set himself on fire near the national assembly as a sign of protest. He was taken to the hospital, but unfortunately died as the damage was too severe.
One perspective is the unfairness for taxi drivers, who are already suffering, as taxi driving is a job which for many is a last resort when no work is found. So, after working so hard to get a license, having to pay to learn strict procedures and protocols, and often have financial security, now having to compete with individuals who use Uber and lack any professional requirements, but steal the same customers, is viewed as a great injustice.
However, following another perspective, many who have heard or experienced uncomfortable or displeasing experiences with Taxi drivers feel Uber is a new refreshing way to travel. Some complaints are regarding the smell of cigarette smoke, or that some refuse to take passengers depending on the location they request, as it would not be profitable for the driver.
Although profitability is often not a concern for taxi drivers in the West, the immense competition of taxi drivers in the East, and places like South Korea forces prices to lower to meet sustainable demands.
Reasons like meager payment for 12-hour work shifts, having to pay a daily $110 from those 12-hour shifts to rent the taxi-car from the taxi company, forces drivers to cater to certain customers, as if the threshold is not met, the driver must pay from his own pocket.
This, coupled with a highly competitive taxi industry creates a flawed system where Uber is seen as a keen enemy, and provides background to the shared animosity of taxi drivers. Considering there are about over 250000 operating taxi’s in Korea, and the minimum fare price is 1/5th of a taxi in LA, or 1/4th of that of Tokyo. As well as a sophisticated transportation industry in buses and trains, the introduction of a new competitor threatens the livelihood of already struggling taxi driver’s.
Yang-Deok Lee, the Executive Director for the National Taxi Association states that each country’s geographical environment, transportation culture and system differs. For example, America, has about 100 times the landmass of South Korea, which results in a taxi shortage, so develops Uber to fill in the demands for such a large area. Whereas the public transportation system in Korea is tremendously developed, as he states:
“We don’t think ride-sharing services are necessary”
As the current supply of taxi’s can easily fill the demand of customers. he continues by saying the “the taxi industry is really struggling right now”, and that “you could even say it’s on the verge of collapse”. And that by allowing regular cars to be used for ride-sharing, it would mean the end of the Korean taxi industry.
Issues like taxi driver unfriendliness, refusing customers and selecting only specific kinds of people stems from this flawed system where the driver needs to make $110, or suffer having to pay from their own allowance. This is without even considering the taxi driver’s personal needs to make money, as the minimum wage in South Korea is currently 7.37 USD per hour. Yang-Deok Lee proposes the end of ride sharing services like Uber, and that reforms in the taxi industry would help heal the bitter experiences many customers feel.
However, this is not just the case with Korea, but any country with a highly established transportation industry, and in countries like China, Germany, and Japan. While in places like China, Uber’s failure is most directly a result of regulations from municipal governments, who are able to control who is eligible to drive a taxi and prices as well. These limitations presented a large threat to Uber, who sold off their Chinese business to Didi Chuxing, who was basically Uber’s greatest competitor, and with possible new regulations, the entire business could be compromised. So selling off the business in China was a reasonable decision considering the potential greater loss of investment Uber had made to gain popularity in China.
I also agree with Yang-Deok Lee that ride sharing services like Uber are unnecessary in South Korea. It seems to create more imbalance and political tension rather than contributing to the economy beneficially. As a Korean, my experiences with taxi’s while I visited in Korea were all positive. As one of the interviewed citizens states in the video: “It’s only natural for bad memories to last longer than good ones”, I think its definite that only a minority of taxi drivers have ill-intentions. Having a ride sharing service like Uber forces taxi drivers to compete, and coupled with an already low pay, this is where selective customer choosing and unfriendliness primarily originates from. The already poor and hard-working lower class do not deserve even greater hardship and competition.
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