Uber Taxi, a cab-hailing service by U.S. Uber Technologies using a pool of licensed taxis, has been launched on a trial basis in South Korea, adding competition in the heated franchise ride-hailing market in the country.

Uber Korea said Wednesday that it has begun its licensed taxi-hailing service Uber Taxi in Seoul. Users can get a discount of up to 10,000 won ($9.10) depending on travel distance for their first try, and receive a 20 percent discount after that until March 31.

Mobility players have been jumping into the taxi-hailing market in the country after the government cleared regulatory setbacks by allowing companies to use registered taxi pools while banning on car-sharing services using rented cars and unlicensed chauffeurs. Uber is said to have 500 to 600 units of licensed taxis and plan to increase its fleet to 1,000 within the first quarter.

Uber Taxi is installed with an air purifier to ensure safe travel. In order to prevent drivers from refusing passengers, the company doesn’t share passengers’ destination information with drivers. Customers can check nearby available rides via Uber app and make in-app payments with a registered credit card to minimize physical contact.

Tom White, director of Uber Korea, said Uber Taxi is optimized for the Korean market and the company will make sure safe rides by firmly complying with hygiene and disease control measures.

Since the revision to the passenger transport service act passed the National Assembly early last year, mobility startups and majors have been rushing to the franchise cab-hailing market with licensed taxies. Transportation franchise business refers a business that provides standardized transportation services by hiring licensed taxi drivers or companies. It has been adopted in Korea in response to local taxi drivers and industry’s strong opposition against unlicensed ride-sharing services like regular Uber services.

Uber last year unveiled a plan to set up a joint venture with T map Mobility, a new mobility business entity of SK Telecom, in a move to jump into the burgeoning e-hailing market in Korea.

The country’s largest car-sharing service provider SoCar in October also made a stunning comeback with its own franchise taxi-hailing service Tada Light after its popular van-hailing Tada Basic service was kicked out of the market due to the government’s ban on car-sharing service using rented cars and chauffeurs.

Startups, including 42dot sponsored by Hyundai Motor and Kia Motors, are also readying to jump in the new car-sharing market in Korea.

By Oh Dae-seok and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]