Seoul, South Korean - Prosecutors have brought charges against the American founder and CEO of smartphone cab service Uber and his Korean partner for operating an illegal taxi service, the latest in a string of bad publicity for the firm.
On Wednesday the Seoul prosecutors’ office said Uber global head Travis Kalanick and a local rental car service operator had been indicted for violating a law governing passenger transport services.
Neither were detained and it was not immediately clear whether Kalanick would visit Seoul for trial.
In South Korea, rental car service operators are banned from conducting passenger transport business using their cars. Violators face up to two years in jail or a fine of 20 million won (R212 000).
The Seoul city government filed complaints with prosecutors, saying Uber's operations raised passenger safety issues and threatened the livelihood of licensed taxi drivers.
City regulators have launched a crackdown on drivers and rental cars that cooperate with Uber. A financial reward of up to one million won (R10 500) was offered for those who report Uber's activities.
California-based Uber is the most prominent of several smartphone apps that are shaking up the traditional taxi landscape in cities around the world.
It has already faced significant resistance from regulators in several countries, who accuse it of unfair competition and lacking in standards.
Uber made headlines this month when one of its drivers allegedly raped a passenger in New Delhi and has also sparked angry protests by cab drivers in France and other countries who fear it is chipping away at their client base.
APOLOGIES FOR SYDNEY ‘SURGE PRICING’
Meanwhile, the company has said it was "truly sorry" for hiking prices as frightened people fled an armed cafe siege in Sydney last week.
The company initially implemented "surge pricing", which increases rates during peak demand, for those exiting Sydney's financial hub as police surrounded a cafe where a gunman was holding hostages.
It reportedly charged customers four times the regular fares to leave the area.
Uber said: "The events of last week in Sydney were upsetting for the whole community and we are truly sorry for any concern that our process may have added.
"We didn't stop surge pricing immediately. This was the wrong decision."
After a social media backlash on the day, with some Twitter users calling its actions "a shameful disgrace", Uber offered free rides out of the central business district and said it would refund rides.
"It's unfortunate that the perception is that Uber did something against the interests of the public," it said. "We certainly did not intend to. We will learn from this incident and improve as a result of this lesson."
Globally Uber has defended surge pricing, arguing it effectively matches supply with demand by encouraging drivers to move to areas where there are shortfalls.
It has, however, had to concede to cap surge pricing throughout the United States during national emergencies after reaching an agreement with regulators.
AFP