Uber wants review of taxi licence rules

Uber wants review of taxi licence rules

Uber Technologies Inc, creator of the GPS-based smartphone app, is urging the government to review taxi-licensing regulations to alleviate mounting conflicts between traditional taxi services and the company's automated system.

Uber, an automated service for hiring private cars, is struggling to stay in business in Thailand despite receiving a positive response from consumers.

The Land Transport Department last week warned people not to use Uber, saying its drivers were not registered or insured for driving commercial vehicles.

It also claimed Uber's use of credit-card payments for fares was not in compliance with authorities' online payment rules.

Uber has faced similar challenges in cities around the world.

Cab drivers are generally opposed to the automated taxi service, complaining their overhead costs including insurance made it nearly impossible to compete.

Debate is also heating up over whether Uber is a technology middle man or an unlicensed, unregulated taxi service provider.

Nevada has become the first US state to suspend California-based Uber.

"We respect Thailand's laws and legal processes. We're ready to comply with the country's systems," said Niall Wass, Uber's senior vice-president for Europe, the Middle East, Africa and Asia-Pacific.

"We simply want to allow consumers in Thailand to enjoy lower prices and better quality."

Uber operates through a smartphone app or web browser, allowing users to request a ride and track its progress.

Both rider and driver can see each other's picture and profile on the app, which requires both parties to accept one another before any rides are arranged.

The app then uses GPS to guide the driver to the passenger and the passenger's destination.

Uber has provided service in Bangkok and Phuket after launching its Thai operation in April.

"We've been discussing with many authorities about how our service can benefit consumers and Thailand," Mr Wass said.

He said Uber drivers did not need to drive around looking for customers, saving fuel and time and alleviating chronic congestion in cities by up to 30%.

Uber expects half its revenue to come from outside the US within three years, driven mainly by Asia's fast-growing cities thanks to the proliferation of smartphones, Mr Wass said.

The company has a presence in 35 Asian cities out of 216 cities in 46 countries.

The company claims its platform creates 50,000 new driver jobs a month.

Paiboon Amonpinyokeat, founder of P&P Law Firm in Bangkok, said Uber was in violation of the Motor Vehicle Act, as drivers did not hold a commercial driving licence as required by law, while service cars were not registered for public use.

Problems would not have arisen if the service was agreed between two private parties, he said.

"However, the service became popular and was adopted by the general public the same as regular taxi service. That's when the problems occurred, as the cars used are private vehicles without public registration," Mr Paiboon said.

Authorities have expressed concerns over the safety and security of Uber's customers, particularly the liability of the company and its drivers in case of accident.

However, Mr Paiboon, who has used Uber, said the service was premium and targeted high-end consumers.

"Uber's cars are new, clean and up to standard compared with regular taxis. Uber's drivers offer better service with nicer manners," he said.

Mr Paiboon also said Uber's use of credit cards was considered safer than cash, as customers were protected under the Consumer Protection Act.

"If consumers are not satisfied with products or services, they don't have to make any payment," he said.

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