Tada "Service Suspension... Innovation Will Stop Here" (Update)

[Asia Economy Reporter Buaeri] The amendment to the Passenger Transport Service Act, known as the 'Tada Prohibition Act,' passed the National Assembly's Legislation and Judiciary Committee on the 4th, and Tada announced that it will "soon suspend the Basic service."

Park Jae-wook, CEO of Tada, released a statement in the afternoon, saying, "With the judgment of the National Assembly, we are returning to the past," and added, "We apologize for not being able to protect the service. We tried hard, but we could not persuade the lawmakers who strongly advocated for the passage of the Tada Prohibition Act and the Ministry of Land, Infrastructure and Transport."

He continued, "We also apologize to the Tada drivers. We promised to definitely protect their jobs, but we could not do so," adding, "We made a promise to build a mobility ecosystem to create a better world, but we are unable to keep it."

CEO Park said, "We apologize to other startup colleagues as well. We said we would set a good precedent, but it has become a case that is not," and declared, "Tada's innovation will stop here."

Meanwhile, Article 34-2 of the amendment passed that day allows operators to arrange drivers only when renting 11- to 15-seater vehicles for tourism purposes for more than 6 hours or when the rental and return locations are airports or ports. Accordingly, if the amendment passes the plenary session of the National Assembly on the 5th, 'Tada Basic' will become illegal after a grace period of 1 year and 6 months.

The amendment reflects the Ministry of Land, Infrastructure and Transport's revision. The Ministry added a clause to Article 49-2 of the amendment, which defines the types of platform transportation businesses, stating "including cases where a rental car business operator rents a vehicle for rental business use," thus opening the door for a 'rent-a-car' type business. However, Tada must pay a contribution and obtain a platform transportation business permit to continue operating in the current manner.

This content was produced with the assistance of AI translation services.