MOTC Changes Their Mind And The Rules, And Nobody Wins

Two years ago we agreed with the Ministry of Transportation and Communications (MOTC) to restart Uber in Taiwan under a new, fully legal business model, partnering with rental car companies. This model successfully increased earnings for 10,000 rental car drivers and their families, and more than 200 small to midsize local rental car businesses.

At a meeting with Vice Minister Wang, on April 9, we were told we were compliant. We find it unacceptable that just days later the MOTC is now suggesting our business is not legal. More than 100 audits were conducted by the Directorate General of Highways on rental car companies since 2017 – it was never stated that their partnership with Uber was not compliant with the law.

Today, to support the taxi industry, the government has decided to change the rules with little or no regard to the devastating effect this will have on rental car drivers and rental car businesses. It is unreasonable and irresponsible for them to suggest that this dire situation can be solved simply by platform drivers becoming taxi drivers and for Uber to become a taxi operator. This approach shows a refusal to recognize how our app works, how rental car drivers want to work, and how consumers want to commute.

MOTC is offering an ill-conceived idea without thinking through the process or consequences for all the relevant stakeholders. The MOTC has not clearly outlined how rental car drivers, rental car companies and a technology platform like Uber could transition to be a taxi driver, dispatcher or taxi company; and under the current multi-purpose taxi regulations, they do not allow for dynamic and upfront pricing, or a flexible working model. This is not the kind of guidance we expect from a responsible government concerned with all of its citizens.

Uber is a technology company, we do not operate anywhere in the world as a taxi company or a dispatcher. To do so would not help anyone. Not consumers who would lose access to safety features, dynamic pricing and mapping. Not the taxi industry who would have an influx of extra taxi drivers to compete directly against.

With only four days to go until the end of the consultation period we are deeply concerned by the government’s attack on our legality – this seems like a smokescreen to hide the fact they have decided to change regulations without a proper consultation with all parties.