“We live in a state governed by the rule of law where everyone should play by the rules,” Beltrame said. “We must not allow the justice system to be trampled underfoot.” Uber, which began operations in Uruguay on Nov. 19, has faced fierce opposition from Uruguay`s transportation industry, amid complaints of lack of regulation and alleged unfair competition. Lawmakers in the Uruguayan capital have announced they will impose sanctions on U.S. ride-sharing service Uber. Uber`s smartphone app, which connects ride-seeking users with private drivers looking for customers, has shaken up the taxi market in more than 60 countries – with sometimes violent protests from traditional taxi drivers. Felipe Carballo, the bill`s lead author and a member of the Broad Front`s left wing, said the reason for his proposal was that the US-based company started operating in the country “overnight,” likely in violation of Uruguay`s existing regulations. Montevideo will enforce its transport rules, which include penalties such as confiscating the license plates of vehicles that provide unauthorized services, the capital`s legal director, Ernesto Beltrame, told reporters. The Municipality of Montevideo has carried out a comprehensive economic study on the operation of ride-hailing services, including Uber, Easy Taxi, Cabify and Uruguay Present, and their consequences in the transport sector. The study shows that the ratio between the number of available taxis and the number of vehicles per app is 1 to 4, meaning that at peak times, ride-hailing apps meet demand that taxis cannot.
In addition, most drivers who work for ride-hailing platforms do so part-time, specifically during peak hours when the taxi deficit has always been high. Since May 2018, the approval of new licensees for operation on ride-hailing platforms has been suspended. As a result of the restriction, rates have increased. After the study, the authorities decided to reverse their decision and issue more permits to VTC users. The ministry`s government also intends to prohibit drivers who do not own a vehicle from working with a third party`s car. The aim is to avoid a relationship of subordination between the vehicle owner and the driver and to maintain the driver`s independent status. Lawmakers in Montevideo, Uruguay, are expected to impose fines on U.S. ride-sharing service Uber after the company began operations without proper approval from city officials. Home | Updates | Based on an economic study, the Uruguayan authorities announce changes in the regulation of ride-hailing services “It is a very negative development that Uber has opted for the `made` route, as if this country were a no man`s land where everyone can do what they want,” commented MP Caballo, also admitting that the feeling of “dissatisfaction” with Montevideo`s taxi fleet is “quite obvious”. Montevideo Mayor Daniel Martinez has also promised to regulate Uber, following the example of Mexico City, which last August became the first city in the world to regulate ride-sharing services. Want more news? Subscribe to CPI`s free daily newsletter for more headlines and updates on antitrust developments around the world. Taxi unions have voiced concern, warning that services like Uber are able to cut regular taxi fares without being subject to any form of licensing or mandatory, tax-exempt insurance requirements.
Uruguay`s Broad Front coalition this week backed a bill that would ban the operation of ride-sharing app Uber for a period of 1 year. The stated purpose of the law, according to official sources, was to allow time to properly determine how the service should be regulated.