Ride-hailing app Uber announced Thursday noon that it will suspend services in Taiwan starting Feb. 10, due to the risk of heavy fines.
Taiwan’s transport authority Thursday issued 11 fines for Uber violations amounting to over 230 million new Taiwan dollars (7.4 million U.S. dollars).
“We have not made this decision lightly, as we know it will have a significant impact on hundreds of thousands of drivers and riders,” Uber’s Taiwan team said in an online statement.
Uber entered Taiwan in 2013 and operates in four cities, including Taipei and Kaohsiung, but local taxi drivers have accused the firm of illegally operating ride-sharing services.
Taiwan implemented a revised highway act last month, with violators facing fines up to 25 million new Taiwan dollars for violating illegal passenger services. Uber drivers could be fined and have their driving license suspended.
Uber said that it had listened to feedback from Taiwan authorities and people on what was needed for the introduction of ride-sharing regulations. However, Uber said that the administration had “moved further and further away from embracing innovation and setting the stage for a 21st century transport policy.”
Uber added that it hoped that pausing operations would reset the conversation and inspire current leader Tsai Ing-wen to take action. Enditem