Find fundamental solutions to ease midnight cab shortage
The government has unveiled a set of measures to ease the nighttime taxi shortage. On Tuesday, the Ministry of Land, Infrastructure and Transport announced a plan to raise the late-night taxi-hailing fee to 5,000 won ($3.49) from the current 3,000 won. Separately, the Seoul Metropolitan Government is mulling an increase in basic fares from 3,800 won to 4,800 won.
Officials expect those steps to improve the treatment of drivers and bring them back to the taxi business. During the COVID-19 pandemic and social distancing over the past two-and-a-half years, many cab drivers quit and sought better-paying jobs, such as designated driving and courier services. As a result, the number of taxi drivers decreased to 74,000 from 102,000 before the pandemic. In Seoul alone, the number fell from 31,000 to 21,000.
Other measures include an end to mandatory breaks for drivers, a rule that has been in effect for five decades. Taxi drivers must take a day off after working for two days. The government will also introduce part-time taxi drivers who work night shifts and expand alternative transportation methods by, for instance, piloting real-time call-type late-night buses in downtown Seoul.
The underlying cause is a shortage of taxis. It is doubtful whether the government's measures will work properly because most of them are seen as makeshift solutions. Some taxi users may still need help to catch a cab despite the sharp increase in base fare to nearly 10,000 won.
The government should refrain from targeting innovative taxi-hailing services, such as Uber and Tada, and rather find fundamental answers. The government said it would ease licensing requirements and reduce contribution burdens to boost online mobility platform businesses. However, if existing taxi companies and drivers stage a strong protest again, the plan is highly likely to languish. Unless the National Assembly revises the act to ban Tada and changes the permit system to a registration system, few will dare to provide innovative services.
The government has unveiled a set of measures to ease the nighttime taxi shortage. On Tuesday, the Ministry of Land, Infrastructure and Transport announced a plan to raise the late-night taxi-hailing fee to 5,000 won ($3.49) from the current 3,000 won. Separately, the Seoul Metropolitan Government is mulling an increase in basic fares from 3,800 won to 4,800 won.
Officials expect those steps to improve the treatment of drivers and bring them back to the taxi business. During the COVID-19 pandemic and social distancing over the past two-and-a-half years, many cab drivers quit and sought better-paying jobs, such as designated driving and courier services. As a result, the number of taxi drivers decreased to 74,000 from 102,000 before the pandemic. In Seoul alone, the number fell from 31,000 to 21,000.
Other measures include an end to mandatory breaks for drivers, a rule that has been in effect for five decades. Taxi drivers must take a day off after working for two days. The government will also introduce part-time taxi drivers who work night shifts and expand alternative transportation methods by, for instance, piloting real-time call-type late-night buses in downtown Seoul.
The underlying cause is a shortage of taxis. It is doubtful whether the government's measures will work properly because most of them are seen as makeshift solutions. Some taxi users may still need help to catch a cab despite the sharp increase in base fare to nearly 10,000 won.
The government should refrain from targeting innovative taxi-hailing services, such as Uber and Tada, and rather find fundamental answers. The government said it would ease licensing requirements and reduce contribution burdens to boost online mobility platform businesses. However, if existing taxi companies and drivers stage a strong protest again, the plan is highly likely to languish. Unless the National Assembly revises the act to ban Tada and changes the permit system to a registration system, few will dare to provide innovative services.
