The National Assembly recently passed revisions to the Passenger Car Transport Business Act, that would effectively bring an end to the driver services provide by the company Tada. The changes to the Act will effectively phase out Tada driver services in a year and a half from March 2020. While the taxi industry, which has a rival relationship with Tada services, actively supported the revision with legal charges, claiming that the ride service was a violation of the law, there are many people who disagree with the planned policy. On March 14, 280 representatives from startup companies participated in the "Save Tada Signature Movement" and voted actively against the ban. About 80,000 citizens submitted a petition against a law prohibiting the operation of Tada services and their opinion was supported by a decision by the Fair Trade Commission (FTC). I strongly support the continued operation of Tada services and would like to see the revisions to the Passenger Car Transport Business Act dealing with Tada service be repealed.
First, Tada service is already a regional vehicle rental service in the Seoul metropolitan area. As of 2020, it has grown into a domestic mobility service with 1.7 million members and 1,500 vehicles, and its re-boarding rate is almost 90 percent. Therefore, if Tada were to have their operations curtailed by this law, many drivers working for them will lose their jobs and face financial serious difficulties when the company is forced to close. This would also add further burdens to the employment problem in our country.
Next, as the service is highly innovative, its business grew 13 times in about four months last year. This proves that Tada has great potential for continued future growth. If their operations are curtailed by enforcing the new law, it is possible that the entry of other innovative small and medium-sized enterprises might be blocked in future too. Therefore, the Tada service should not be curtailed, so the government can instead project an image that encourages new start-up companies to enter markets without fear of being shut down to protect existing monopolies.
This convenience is worth saving. Because Tada operate large passenger vans, their services are more beneficial than ordinary taxis. Consumers who have experienced rides with Tada say it is really convenient for pregnant women, disabled people or people who travel with pets. Kim Yong-tae a member of the United Party, one of the nation's political parties, said that this service is very useful because it is easy to use, even on weekends, or late at night.
Finally, it is clear then, that Tada service is highly beneficial for users. However, despite its advantages, the so called No Tada service law was implemented. As a result, Tada has begun the process of selling some off its vehicles, announcing a temporary suspension of basic services on the 11th of April, 2020. This led to conflicts between company representatives and drivers who plan to take legal action for dumping their drivers after their campaign to keep the company going failed. In other words, the law prohibiting Tada services is now creating more unemployed people and labor conflicts that are not going to be easy to resolve.
In my opinion, to simplify the matter the National Assembly should reconsider revising the Tada Prohibition Act as soon as possible. By doing so, they could help spur the continued growth of a successful start-up and encourage the development of others. They could also save jobs and deter a major labor conflict all while continuing to provide a proven popular driver service. In the meantime, representatives of the Tada service should also find ways to continue to operate the and solve the escalating conflicts between the drivers and the company.
|▲ The picture of Car of Tada service (Photo from remember now)|