Uber Taiwan today called on the Ministry of Transport and Communications (MOTC) to reconsider proposed changes to the existing regulations covering the rental car industry.

While the proposed changes were announced on February 22, and are now subject to a 60-day consultation period; if introduced, they would negatively impact rental car companies’ businesses, threatening the livelihoods of 10,000 Uber drivers and their families, and restricting choice for 3 million regular Uber users across Taiwan.

The MOTC’s proposal to change existing rental car regulations – by prohibiting trips of less than one hour, restricting any form of discounts or deals to customers, and requiring rental vehicles to ‘return to garage’ between trips – is designed to protect Taiwan’s taxi industry. However, whilst the objective could be seen as admirable by some, the proposal is anticompetitive, damages livelihoods, and stifles innovation.

To find a positive solution for all parties, Uber is proposing an “E-hail Multi Purpose Vehicle Plan” that would allow customers to book a taxi or a rental car through an app, a practice that is increasingly popular with millions of passengers worldwide. This would provide a win-win situation for taxis and rental car operators and drivers, while also providing passengers with choice.

Uber Taiwan’s General Manager, Willy Wu, commented: “While we understand the Government’s efforts to protect the taxi industry, it shouldn’t be at the expense of the many thousands of drivers and operators who run fully legal businesses under the current rental car laws. Regulations should promote fair competition, market freedom, and initiatives that support improvement of the transport industry as a whole. We hope that the Government will consult with all the relevant parties before putting in place a positive solution for everyone.”

Uber Taiwan has been partnering with rental car and taxi companies since 2017 and has adapted its business model to ensure that it is fully compliant with the current MOTC’s guidelines. Currently there are 10,000 active Uber drivers in Taiwan and more than 3 million regular users of the app. In other parts of Asia, and the world, Uber successfully partners with taxi companies to enhance their businesses.