fbpx

This post is also available in: Español (Spanish)

Chile’s ride-hailing legislation moves forward, Uber isn’t happy

This post is also available in: Español (Spanish)

Contxto – In Chile, the Senate’s Commission on Transportation moved the country’s “Uber Bill,” as it’s commonly referred to, along without making major changes. Much to the dismay of ride-hailing platforms like Uber and Didi.

The bill’s next stop is at the Commission on Internal Revenue for another round of revisions. After which, the final phase is the Senate floor for one final debate.

This recent development was not pleasing for ride-hailing platforms. And that’s because this legislation outlines that the platforms’ drivers must have a special license to work.

Consequently, this means ride-hailing operators will have a tougher time finding drivers with whom they can partner up.

Related article: Colombia kicks ride-hailing Uber and Picap to the illegal curb

Chile’s “Uber Bill”

If the bill is ultimately approved as is, people interested in signing up as drivers face some discouraging obstacles. For one, they’ll have to obtain a professional license. And getting this document entails a lot of bureaucratic fun, including attending in-person classes.

Likewise, the legislation obliges platforms to raise their fares in the spirit of “fair competition.”

The stances on ride-hailing

Of course, ride-hailing operators have manifested their discontent with the bill. They argue that this will prove detrimental for users, as there will be fewer drivers available. All of which will result in higher fares and wait times.

Meanwhile, Gloria Hutt, the Minister of Transportation was happy with the proceedings. 

“[It] establishes a series of requirements for transportation apps with the objective of creating more equal opportunities and fair competition,” said the government rep, “and that benefits the users who consume those services.”

Bah humbug.

If taxi services in Chile are user-friendly the way they are in Mexico and Colombia, drivers should step up their game and offer more quality service. 

In those countries it’s their poor service and lack of transparency that led to the success of ride-hailing platforms in the first place.

And in any case, Chile’s bill puts Uber in a tighter spot in Latin America when you factor in its imminent exit from Colombia on February 1.

Wanna hear more? We recommend you listen to the following podcast episode: Despegar adquiere a Best Day – La regulación de trasporte chilena, Gympass firma con WeWork. You can find the time stamp available in the description.

Related articles: Tech and startups in Chile!

-ML

Mariana López
Eager learner and fervent asker of existential questions. My topic darlings are startup management, edtech and all things pop-culture. If you don't see me smiling, I'm probably just hungry. J Balvin is Latin America's best reggaetonero and I dare you to convince me otherwise.

Must Read!

Climate change calls for governments, NGOs, and the private sector to join forces.

ChileGlobal Ventures and BHP launch contest to find startups to fight...

0
Contxto - Climate change affects everyone. But rather than sit on the sidelines and wait for more pictures of sad polar bears...