Uber Mulls Motorcycle Ride-Hailing; MOTC Warns Service is Illegal, Faces NT$25M Fine

It is rumored that Uber intends to pilot a motorcycle ride-hailing service in Beitou, but the company claims it is still in the evaluation phase. The Ministry of Transportation and Communications (MOTC) stated today that the taxi transport industry involves operating with passenger cars for hire, and regulations do not permit motorcycles for this purpose. Violating drivers face fines of up to NT$200,000, while the operator faces a maximum fine of NT$25 million.

A netizen shared on social media that they received a message from Uber's Beitou test plan service center recruiting motorcycle drivers. The service was set to begin yesterday, and invited drivers were required to prepare documents including a driver's license review certificate (showing no accident record), ID card, vehicle registration, and driver's license.

Lee Wei-er, president of the Taiwan Digital Platform Reservation Transport Service Professionals Union and a spokesperson for the Taipei City Taxi Drivers' Union, told the media that, to his understanding, Uber had initially proposed a collaboration with Taipei's Department of Information and Tourism. The plan was to tie in with a promotional project related to the history and culture of Taipei's Beitou District. During the Japanese colonial era, Beitou's inconvenient roads and transportation led to a unique culture of motorcycle taxis. However, this practice has declined with time, and amendments to the Highway Act have established clear regulations for commercial passenger transport. The Department of Information and Tourism later consulted with the Department of Transportation and the Public Transportation Office, which deemed it illegal, and the plan was not pursued.

Lee pointed out that motorcycle ride-hailing is not among the nine current transportation service categories. He argued that Uber's attempt to use a cultural and historical angle to match delivery riders with passengers is illegal for the riders and offers no protection for consumers. He called on central and local authorities to intervene quickly.

In response to concerns about Uber's proposed motorcycle service in Beitou, the MOTC issued a press release stating that under Article 34 of the Highway Act, commercial passenger transport is restricted to legally approved highway bus services, urban bus services, and taxi transport services. Among these, taxi services are defined as operating with rental passenger cars, and current central regulations do not permit motorcycles as a tool for commercial passenger transport.

The MOTC noted that if a platform operator facilitates passenger transport by motorcycle, it constitutes operating an unapproved motor transport business, which violates current laws. Under existing regulations, violating drivers can be fined up to NT$200,000, and the platform operator can be fined up to NT$25 million, with the possibility of license and registration suspension.

The MOTC also mentioned it has consulted the competent authority, the Financial Supervisory Commission, on related insurance issues. The current practice of motorcycle ride-hailing does not conform to legal business models, and thus cannot be covered by commercial insurance. Relevant passenger insurance and business liability protections are not legally applicable.

The MOTC added that insurance rates are calculated based on vehicle use, with different risk levels and premium designs for private and commercial vehicles. If illegal commercial transport occurs, insurance companies may refuse to pay or disputes may arise in the event of an accident, leaving both drivers and passengers without full protection. Based on public safety and consumer rights, the government does not permit illegal commercial passenger transport by motorcycle.

Hu Ti-chi, Director of the MOTC's Department of Public Transport and Supervision, pointed out that the competent authority for the taxi industry is the local government, and motorcycles are a more dangerous "flesh-and-steel" service model. From the MOTC's standpoint, it is not in favor.

The MOTC stated that the Beitou area does have a unique historical background, where local motorcycle transport culture gradually formed due to its terrain and hot spring tourism development. This is a special phenomenon formed in a historical context. For this existing service model, the Taipei City Government is the competent authority. If it deems its continuation necessary, it should be guided and managed through local ordinances or management mechanisms, without expanding its scale, and move towards safety management and service transformation. However, the Beitou exception should not be used as a basis for the full-scale legalization of motorcycle ride-hailing, to avoid impacting the current transportation management system and public safety.

The MOTC emphasized that it will continue to cooperate with local governments and relevant authorities to properly handle related issues, balancing public safety, consumer rights, and local needs in accordance with the law.

Uber responded by stating that it hopes to use the power of technology to explore the most convenient, efficient, and safe mobility options for everyone.

Regarding Beitou's unique geography and tourism culture, Uber said it is actively researching with its partner fleet, U-Hsing Formosa Co., Ltd., how to use digital innovation to upgrade and optimize existing local transport services and introduce more comprehensive safety features.

Uber stressed that the project is still in the evaluation stage and that it hopes to have the opportunity to work with local fleets and partners to contribute to the promotion of green and smart transportation.