The Constitutional Court has ruled unanimously that a law which effectively bans ride-hailing company Tada’s services is in accordance with the Constitution.
The decision on Thursday came 13 months after Value Creators & Company, the operator of Tada, and its parent company SoCar filed a constitutional petition against a revision of the Passenger Transport Service Act that was adopted by the National Assembly two months earlier.
Under the revision, a transport platform operator can only use eleven to 15 seat rental vans for the purpose of tourism and for a duration of at least six hours, with the vehicles to be rented or returned at an airport or seaport.
It essentially banned Tada’s ride-offering service, which had been used for shorter distances than for longer travel. It used sedans to transport passengers without restrictions on location.
In its decision, the Constitutional Court said ride-hailing operators, while providing overlapping services as that of the taxi industry, had not been under the same regulations, prompting growing social conflicts.
SoCar said it respects the court’s decision.