Wednesday 25 May 2022

Uber is illegal Says Government, but It will not shut it down

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25 May 2022 - At The Banks - BCCR

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After 45 days the government said it needed to pronounce on the Uber issue, it has reiterated the position that Uber and other similar transport are illegal, but it will not disconnect the platform, recognizing the challenge imposed by technological advances to the Government.

In the forground, Rodolfo Méndez Mata, ministro de Obras Públicas y Transportes (MOPT), with German Marin, director of the Policia de Transito (traffic police) in the background.

For this reason, it undertook to review and modernize the existing legal framework for paid transport.

“Transportation services in all its forms are a source of employment and mean a socioeconomic solution for thousands of families. Aware of the fact that new technologies pose challenges for governments, we are looking for an integral solution to solve the situation of taxi drivers in a modern and innovative way for the benefit of users,” said Rodolfo Méndez Mata.

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In Costa Rica, now with three years (on August 21) of operating in the country, Uber has 22,000 drivers and 738,000 users, and a source of direct employment for 550 people.

Uber reacted on Wednesday by reiterating its position to maintain an open dialogue with the Government.

“In three years of operations we have shown that the coexistence of different mobility schemes in the country is possible. Various voices from the Legislative Assembly, users, partners and civil society, in general, recognize that the time has come to implement a flexible, innovative and differentiated regulation as already exist in more than 132 jurisdictions worldwide,” said Andrés Echandi, general manager of Uber for Central America.

Though Uber has expressed its willingness to negotiate the regulation of its services with the Government, Echandi said weeks ago to that the platform cannot be regulated like the taxis.

This is because the transport service provided by Uber is a private contract between two people, at Echandi’s discretion.

Source (in Spanish): El Financiero

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