[Exclusive] "They Proposed a Partnership, Then Launched Their Own Service"... TADA Files Injunction Against Uber

[Financial News] Mobility platform TADA has filed for an injunction seeking to halt the large taxi service operated by global mobility company Uber Taxi. TADA claims that Uber used a proposed partnership to obtain the data and know-how needed to run large taxis, then launched its own competing service based on that information.
According to legal sources on the 3rd, VCNC, which operates TADA, submitted an application for an injunction on March 31 to the Seoul Central District Court against Uber Taxi’s domestic subsidiary UT LLC (UT), seeking to prohibit unfair competition and trade secret infringement. The core of the request is to immediately stop the use of TADA’s confidential information provided to Uber and to suspend the operation of Uber’s large taxi-hailing service that was developed using that information.
The application states that Uber first approached TADA in October last year to propose a partnership, after which the two sides signed a mutual non-disclosure agreement. In January, Uber then received from TADA key information necessary to operate the platform. This included dispatch principles, ride-hailing methods, algorithms, and information on managing development staff—know-how TADA had accumulated while running its platform. TADA argues that, after obtaining this information, Uber unilaterally broke off the partnership and began preparing to launch an independent large taxi service. During this process, Uber also held briefing sessions to lure drivers affiliated with TADA over to its side.
On April 1, Uber launched its premium large taxi service "Premier Van" in Korea and plans to expand the service area starting from Seoul.
In its injunction filing, TADA argued, "It is inferred that Uber never intended to pursue a genuine business partnership from the outset, but instead approached TADA to obtain trade secrets and use them to refine and validate its own business plan for a standalone service that would directly compete with TADA’s premium large taxi service."
TADA went on to state, "By misappropriating TADA’s trade secrets without authorization, Uber unfairly shortened the time, development, and operating costs needed to launch its independent service," adding, "This is a clear illegal act that violates the Unfair Competition Prevention and Trade Secret Protection Act and infringes on our trade secrets."
Industry observers note that, given the strong lock-in effect typical of mobility platforms, TADA is likely to suffer a significant blow if Uber increases its market share in the premium large taxi segment. Once passengers and drivers move over to the Uber platform, it will be difficult for them to return to TADA.
In the large taxi segment, including vans, TADA currently holds the second-largest market share in Korea after Kakao Mobility Corp. The decision to seek an injunction appears to reflect concerns that Uber, backed by vast financial resources, could rapidly expand its share of the market.
A representative of Uber Taxi responded, "We are continuously discussing collaboration opportunities that can create synergies with various partners," and added, "However, 'Premier Van' is a service already offered by Uber globally, so these claims do not reflect the facts."
wongood@fnnews.com Joo Won-gyu Reporter