In Taiwan, one of the few markets where Uber has little competition, the fines for providing illegal transportation will be increased soon. The fines will be increased up to $780,000 and Uber could be one of the services fined as it is not registered as a taxi business.
The fines will be increased on Friday, with the government saying that Uber must register as a taxi business and follow the same laws as other businesses. This is nothing new for the company as it has faced many fines in the past. In some states or countries, the company has left or been suspended due to the regulations. The company says it is not a taxi business and that the level of regulation required by Taiwan will make it hard for their business model to work.
More than one million people have the app in Taiwan and the service has thousands of drivers. Uber and its drivers continue operating in Taiwan, despite the fines they have received in the past.
Likai Gu, General Manager of Uber Taiwan, said that Uber and their competitors are not taxi businesses and that they’re trying to connect cars and riders. The increased fines could make it difficult for Uber to operate in Taiwan and Mr. Gu says that this will have an effect on foreign companies looking at Taiwan as a place for investment.
Uber isn’t the only company that is facing fines with the new regulations but the ride sharing service could be one of the most affected if it doesn’t register as a taxi business. Fines are nothing new for the company as other places have decided to fine or suspend the service for operating there.
Uber is currently available in more than 500 cities around the world and while the service continues to have success in many of the areas that it arrives to, things could get more difficult for the company in Taiwan, where the fines will be increased starting on Friday.