Q COSTA RICA — More than 2,000 taxis stopped operating in Costa Rica on July 5th, after the deadline for renewing permits expired without the government granting an extension.
Figures from the Consejo de Transporte Público (CTP) —Public Transportation Council—indicate the national taxi fleet, known as “red” taxis, was reduced to 6,521 units, compared to the 8,581 that were authorized before the renewal period closed.
The process excluded 2,060 permit holders who did not complete the process within the established deadline. This decrease in the number of available taxis alters the current composition of the service
Official actions and outlook for the sector
The Ministerio de Obras Públicas y Transportes (MOPT)—Ministry of Public Works and Transportation—reported that it is working on measures to support concession holders and prevent a further reduction in the fleet.
MOPT Vice Minister Sofía Fallas indicated on Radio Extra 92.3 FM that they are seeking to relax some requirements to facilitate the modernization of vehicles and offer alternatives so that operators can adjust financially.
Fallas explained that the intention is to provide an adaptation period for those who need to renew or change their vehicle, highlighting the importance of modernizing the service. She also mentioned the processing of the new platform law, which would allow taxi drivers to also operate through apps and access a dual service model.
The bill has already received a favorable majority opinion in the Government and Administration Committee and is pending debate in the Legislative Assembly. Meanwhile, the Costa Rican Taxi Drivers Union requested a six-month extension for expired permits, aiming to allow more operators to regularize their status and prevent a further decrease in the active fleet.
Fleet Evolution and Recent Background
The number of taxis operating in Costa Rica has fluctuated over the years. Gilbert Ureña, former representative of the sector to the CTP, recalled that Law 7,969 allowed for the creation of 13,500 permits.
Ureña attributes the beginning of the permit reduction to 2015, when digital platforms like Uber began operating. He also noted that the pandemic and economic factors have made it difficult for many operators to remain in the business.
According to him, there were 9,120 active permits this year, although several were already in the process of ceasing operations due to non-compliance with the Caja Costarricense de Seguro Social (CCSS) or voluntary returns due to financial difficulties.
The former leader indicated that the observed decrease is not limited to the recent expiration, but is part of a process that has accumulated over the last decade.
“Of the remaining 9,000, only 7,000 have renewed their permits, and 2,060 have expired,” explained Ureña, adding that the economic situation has made it difficult to meet the requirements to maintain the permit (concession), which include the vehicular inspection, current Marchamo, commercial insurance policies covering civil liability and medical expenses for passengers, a functional taximeter (locally known as the “María”), official red paint for the vehicle.
Of the driver requirements, a taxi driver must have the right driver’s licence (C-1 Professional License), a clean criminal record, and be current with the caja and tax authorities, among others.
Unlike the platforms, ie Uber, Didi, or inDrive, official taxis can only pick up passengers within the specific province designated on their permit.
The outlook for the taxi sector in Costa Rica will depend on the evolution of official measures, the processing of the legal framework, and the ability of the drivers to adapt to regulatory and technological changes. The development of these factors will be decisive for the future of the service in the country.
At its highest point, Costa Rica had about 13,000 to 14,000 officially registered and licensed taxis, including the orange airport taxis, nationwide.