Uber Wars- Questions of Legality and Security
Two weeks ago in Bogotá, taxi drivers blockaded a section of the North Highway and harassed passengers leaving Estereo Picnic, a three-day music festival taking place in the city. Taxi drivers targeted their demonstrations against Uber, an American company that provides a mobile-based transportation network. They specifically confronted—and even physically assaulted—passengers and drivers in Uber vehicles. In the days before, Uber held a strong Internet campaign to promote their service by offering coupon codes to festival-goers. The incident is an example of the convoluted debate surrounding the legality of Uber and security in Latin America.
Uber, Inc. is currently facing judicial battles in dozens of countries. Considered one of the most popular applications in the world, Uber is present in 295 cities across 55 countries. Despite its success, the company has gone through its share of problems, facing hostile taxi drivers at every turn. The company has lost several battles, and is currently banned in a handful of countries. For example, the Federal Public Ministry in Brazil is currently investigating the application’s legality based on a complaint by a Taxi Drivers Association in São Paulo that alleged that Uber exercises unfair competition.
Uber’s legal opponents gravitate toward a straightforward argument centered on unfair competition in a market reserved for traditional taxi services. The problem becomes far more complex in places like Colombia, where the Uber platform itself is not illegal, but rather the use that is derived from it. Uber is thus providing a service to which it is technically not entitled. The question of legality, however, only forms the basis of one side of the debate that is often influenced by the powerful presence of taxi industry pressure groups. Upon delving deeper into the problem, there is a story of security and safety that presents another side of the narrative that may be more revealing of the situation in Colombia, and perhaps Latin America as a whole.
According to a poll conducted in 15 major of the world’s largest capitals cities and New York by the Thomson Reuters Foundation, Bogotá has the most dangerous transport system in the world for women travelers. One taxi-related crime, known as the “millionaire ride”, involves stopping the car to allow armed accomplices to enter and extort money. Uber presents itself as a popular alternative to safety-conscious Colombians because the company runs thorough backgrounds checks on its drivers. Criminals often steal legitimate taxis and act as cab drivers, but they find it nearly impossible to pose as Uber drivers if they cannot access the network. Hugo Ospina, President of Colombia's Association of Taxi Drivers, claims that Bogotá’s reputation for taxi crime is wildly exaggerated, but security is nonetheless a concern that plagues citizens in their daily lives. In Bogotá, Uber has proven successful in both its efficiency and the high level of safety if offers.
Looking within Latin America, the Uber wars involve a dimension that has not been brought to the forefront of debate. Often, the story is one of legality that implicates Uber, the foreign entrant, for the sake of the welfare of the local taxi industry. This dimension leaves out a key group of stakeholders that include everyday citizens who require transportation services within the cities of Latin America. Labor unions in Latin America are often organized enough to readily voice their concerns over any potential threat to their own wellbeing and interests, but the welfare of the broader public may be jeopardized in the process. In a region where not all states have the capacity to guarantee security for their citizens, the legality of Uber may only be scratching the surface of a much needed conversation involving larger issues that impact local citizens.