The Taiwanese government has been scrambling recently with how to deal with the rise of Uber; proposing fixes to the taxi industry last week
Just days after ride-hailing giant Uber waived the white flag in China with the dramatic Didi Chuxing merger, the company is now facing the serious possibility that it may no longer be allowed to operate in Taiwan come mid-August.
According to a report from Reuters, the country’s Investment Commission said today it will cite a misrepresentation by Uber of the company’s business model. The government agency claims the company represented itself as an IT company rather than a transportation provider upon entering the market.
The final decision will be made on April 11, said the Executive Secretary at Taiwan’s Investment Commission Emile Chang, according to the Reuters article. She also said Uber can appeal the decision to the Taiwanese cabinet.
Uber launched in Taiwan in June, 2013 and like many other locations was met with stiff resistance from the taxi industry. Taxi drivers went on protest as recently as mid-July and last week the Ministry of Transportation and Communications said it planned to diversify the taxi industry to combat problems with the ride-hailing industry.
The news comes at an inopportune time for Uber as on Monday the Uber China subsidiary was acquired by Didi Chuxing — a move widely seen by both industry players and the media as a defeat.
Also Read: Uber China to merge with Didi in US$35B deal: Bloomberg
The coming months will be fascinating for Uber as it licks its wounds and adjusts its Asia strategy without the region’s biggest market.
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