US ride-sharing company Uber Technologies Inc announced that it would change its operating model in Taiwan and partner with local taxi firms, which would prevent the company contravening a legal amendment dubbed the “Uber clause.”
The US firm said in a statement that it would work with the taxi industry and serve as a technology platform under the government’s multipurpose taxi program, which allows mobile app-based metering and upfront pricing, and does not require the drivers to use yellow taxis.
Under the new model, “riders won’t see any change to the app experience or the service they have been used to,” Uber said.
The move settles a dispute between the company and the government stemming from Article 130-1 of the Transportation Management Regulations that took effect on June 6, which bans Uber from offering taxi services through business partnerships with local car rental operators in the nation, as it had been doing.
While a transition period is allowed, people who contravene the revised regulations could face a fine of NT$9,000 to NT$90,000 starting on Sunday, the Ministry of Transportation and Communications said.
As for the nearly 10,000 Uber drivers in Taiwan, the ministry said it has been helping those who want to stay in the business obtain taxi operation permits.