South Korean's capital city Seoul has moved to attempt to ban taxi-booking app Uber because it raises passenger safety issues and is “creating unfair competition” for taxi drivers.
The Seoul city government said it will petition national authorities to close down Uber, calling the service “illegal”.
Seoul said it was developing a similar app that will direct customers to licensed taxis.
The Uber app is designed to calculate the journey distance and fee and relay this information to the driver. The Licensed Taxi Drivers Association (LTDA) says this acts as a taximeter, which private vehicles are not allowed to use.
“We are looking into related laws to block Uber and similar apps that arrange such illegal transportation activities,” the council said in a statement.
“Uber users should be aware that it’s hard to be covered by insurance even if a car accident occurs, let alone the issues of potential mechanical problems and background of drivers,” it said.
The council said it would roll out its own mobile app for hailing existing, licensed taxis in December.
“Uber is charging customers while avoiding the regulatory process, which creates unfair competition for taxi drivers and encroaches on their business,” it said.
In June, taxi drivers from around Europe took part in a protest against Uber causing widespread disruption.
Uber was first launched in 2009 as an app to allow users to order private cabs and find ride-shares. It now operates in more than 100 cities around the world, including London and Manchester.