Uber service declared illegal in Taiwan as 63 fines issued

Uber Technologies Inc is violating Taiwan's laws and will continue to attract penalties after more than 60 fines were issued against the company and its drivers, the minister of transportation and communications said.

"The business model they're operating is illegal," Yeh Kuang-shih said in a telephone interview. "Uber doesn't have any transportation-related service licence and actually Uber is doing transportation service."

Taiwan joins jurisdictions from New Delhi to Rio de Janeiro that are pushing back against the San Francisco-based chauffeured-car service. The latest pronouncement is Taiwan's clearest declaration of Uber's legal status after the ministry earlier warned that its business licence is for information services that doesn't allow it to operate taxis or limousines.

"We are disappointed with the MOTC's statement against Uber today (Friday) and are following all legal due processes with regards to the appeals," Uber said in a statement to Bloomberg News.

Uber has been issued 30 tickets totalling NT$2.55 million ($81,000) in fines while 33 penalties to drivers have been handed out for NT$1.65 million, Yeh said. Drivers who offer commercial services without a permit can lose their licence for two months, he said.

Personal data
Those fines will continue to be handed out if Uber keeps operating without a transportation licence, the minister said. To get that permit Uber needs to meet requirements that include ensuring its drivers have commercial licences, he said.

In addition to worries over the safety of consumers following reports of rape in New Delhi and Boston, Taiwan officials are concerned about how Uber collects and manages personal data including name, credit card, location and route, Yeh said.

A Boston man who works as a driver with Uber was charged this week with taking a woman to a secluded area and raping her, as questions about the company's driver-screening process prompted it to begin an assessment of its safety programs. The car-service provider has been sued by the district attorneys of Los Angeles and San Francisco over claims that it makes false assurances to customers about drivers' background checks.

Taiwan's transport ministry is working with the economics ministry to find a legal provision that would allow it to shut down Uber's website, network and mobile app, Yeh said. The Cabinet will also coordinate with various ministries in the coming weeks to discuss how it can implement regulation covering Uber-like services, he said.

Uber became the most highly valued US technology start-up after it raised $1.2 billion this month at a valuation of $40 billion. This week, China's Baidu Inc agreed to invest in Uber and said it will connect its map and mobile-search features with Uber's car-booking service.