The National Assembly on Friday passed a controversial bill that dealt a severe blow to the ride-hailing service Tada, in an attempt to put an end to the conflict between the service operator and taxi companies.

The passage of the bill comes on the heels of a court ruling last month that allowed the ride-hailing service to operate freely. Tada is the only company to offer the service here.

The bill limits the hours of operation for ride-hailing services and also imposes restrictions on the outsourcing of drivers. Ride-hailing companies will only be able to use 11-15 seat rental vans and serve passengers traveling to and from airports or ports. 

It also categorizes mobility platform businesses as passenger transport services, meaning they will be obligated to obtain transport licenses and follow regulations similar to those affecting the taxi industry.

Decrying the amendment on social media, Lee Jae-woong, chief executive of Tada’s parent company, Socar, said: “This bill is one that stifles innovative services like Tada from entering the market. Unlike Transport Minister Kim Hyun-mee’s arguments, the bill prohibits innovation. It is one that will lead many people to lose their jobs.”

“The proposal will help ease social conflicts and allow various mobility platform operators to stably push for innovative business within (legal) boundaries,” the Land and Transport Ministry said in a statement Thursday.

The bill will take effect one year after it is proclaimed into law, with a six-month grace period.

(lisakim425@heraldcorp.com)