Uber Teams With Taxi Drivers To Swerve By Colombia’s Competition Rules

Ride-hailing behemoth Uber is getting around the rules and regulations in Columbia by utilizing its platform to give local taxi drivers an insider take on local rides, Reuters reported on Wednesday (Aug. 11).

The move is similar to others that Uber implemented in some Latin American and European countries in 2020. 

The inaugural launch of Uber Taxi is being rolled out via a collaboration with TaxiExpress, a service anticipated to initially roll out in Bogota, the capital of Colombia. 

Uber has increasingly faced opposition in Colombia and other countries, fending off allegations of unfair competition. Columbian officials forced Uber to stop operating two years ago, but that decision was overturned in 2020, per the news outlet.

Read more: Uber And Lyft’s Strategies Diverge To Ride Economic Recoveries

“Having taxis on the platform is a show of reconciliation … it offers different alternatives for users,” Marcela Torres, Uber’s general manager in Colombia, said during a virtual press conference, per Reuters.

Ride-hailing platforms have no clear direction for operations in Colombia and firms that run in the country — Didi and Cabify — have faced fines levied against drivers. There have also been accounts of taxi drivers’ anger expressed against ride-hail service providers.

See also: Uber Reigns In Restaurant Delivery, Eyes Grocery Growth

Since 2020, Uber Taxi has operated in Mexico, Brazil, Chile, Argentina and Spain. 

“In Colombia we are living through changes and searching for alternatives with former competitors is a part of that,” TaxExpress general manager Jose Hernandez said, per Reuters.

Related: Uber’s Q2 Rebound Driven By Costly Re-Staffing Made Prior To COVID-Delta Concerns

The Silicon Valley delivery and ridesharing startup posted profits of 58 cents per share on revenues of $3.9 billion for the second quarter, topping Wall Street forecasts of a 51 cents loss on $3.7 billion sales, PYMNTS reported earlier in August.