SEOUL (Reuters) – Wednesday is D-day for South Korea’s ride-hailing service Tada, a smash hit since its launch just over a year ago, as it prepares for a court verdict that could potentially end its ambitious drive in one of the world’s most tech-savvy economies.
In a short period since starting services in late 2018, Tada has won 1.7 million users as it took advantage of growing demand and the funding muscle of its Japanese backer SoftBank Group Corp.
Yet, Tada’s ride hasn’t been all smooth as it has come up against increasingly tough regulations in a market that has been particularly unkind to ride-hailing apps and a taxi lobby that is an outsized political force.
Prosecutors have sought one-year jail terms for executives of Tada and its parent firm for violating transport laws, with the verdict expected Wednesday morning.
South Korea restricts ride-hailing to only licensed taxis and bans the use of private cars for the purpose. Tada has been exploiting a rule that…
Source Reuters Tech News