The promise of revamping transportation in the world’s cities with private ride-hailing apps and the rapid rise of Uber – with practices that years later have proven offensive in many countries – He was petrified in Montevideo, Far from prosperity This new regime is approaching a decade of history in the Uruguayan capital.
Since mid-2018, there have been almost no new vehicles introduced to respond to travel requests – with a few exceptions – as figures from the municipality of Montevideo show. With the number of permit holders less than half of the best recordswhen there were more than 5 thousand cars available for applications (end of 2018) and the municipality had not yet determined the rules of the game.
According to the official data that was obtained observer, The number of vehicles allowed to accept trips reached 1,924 at the end of 2023, while global records from the mayor’s office show a clear decline in the number of kilometers traveled. By the operators of the two apps that make up the market today: Uber and Cabify.
Even with the end of the pandemic that has led to a significant decline in mobility, the overall numbers of both platforms are unable to take off their offer compared to what they were during that exceptional period, even with taxis opened to provide services also from within its orbit.
Cabify’s trip kilometers traveled shows slight growth in the app’s own records, though it fails to move the needle proportionately.
The situation translates into tangible effects for those who request a car via their cell phone, from the repetition of a dynamic rate that makes the trip more expensive compared to the price, for example, taking a taxi, or the lack of cars, as criticized weeks ago from Uber to the municipality of Montevideo.
“There is increasing demand for fewer vehicles.”transferred to observer Application manager.
Reopening the registration of permit holders is a claim that companies have been repeating for years, while the current number of those authorized to drive through applications is less than half the maximum of 4,000 that the Daniel Martinez administration promoted to halt the permits. The flood of drivers alarmed the government of the time and taxi organizations.
The Carolina Cos administration has promoted some innovations in the regulation established by its predecessor, Daniel Martinez, such as the possibility of active permit holders to join cooperatives and expanding the degree of consanguinity allowed for additional drivers authorized to take trips, although none of them assume an increase in demand.
At the same time, according to reports observerThe municipality reversed its idea that cars of this type of transportation display advertisements for its applications, after a complaint filed by the taxi union to the Board of Directors, claiming that it affected its operations.
Inés Guimarance
Archive, Cabify Trips
Despite consultation observerThe municipality of Montevideo declined to comment on this issue.
The crisis in the sector spurred attempts by workers – and even a bill introduced by Colorado Congressman Sebastian Sanguinetti – to equalize the benefits that taxi drivers receive when purchasing cars, although the initiative did not flourish.
How much instant messaging collects for apps
At a rate of 0.45 indexed units per kilometer ($2.6 in current terms), the municipality of Montevideo receives about $8 million per month from fees transferred by Uber and about $600,000 from Capify rides.
This level of income represents about $2.4 million generated through Uber and about $178,000 from the Hispanic platform, according to the data accessed. observer.
Photo: Leonardo Carreño
Uber app
The establishment of a contribution to the mayor’s coffers for every kilometer traveled was one of the provisions of the Daniel Martínez administration to organize a type of business that began to expand around the world and which had almost no rules of the game in Uruguay.
