A PYMNTS Company

Chile: Transport minister calls Uber and Cabify “Pirate transport” – Announces sanctions

 |  April 11, 2016

Online ride-sharing apps Uber and Cabify will receive fines, with vehicles working for the company being pulled off Chile’s streets. The measure was announced by the Minister for Transport, Andrés Gómez Lobo, who described the transportation upstarts as “pirate transportation”.

“It is a piratical transport system, with unlicensed unprofessional drivers. They are vehicles that lack the proper insurance. I would warn people to be careful, because they’re using vehicles that are not qualified for use as public transportation” said minister Gómez.

Uber and Cabify responded to the announcement, requesting the executive to issue clear regulations for their operations in the country. “We can’t just brand them as illegal (vehicle operations), because it’s not something that’s forbidden. For that same reason we want clear rules, for everyone to be able to use and benefit from Uber” said Carlos Schaaf, Uber’s general manager in Chile.

Meanwhile, taxi unions across the country celebrated the announcement. The unions have accused Uber and similar services of engaging in unfair competition and operating in a legal grey area, opposing them from the start.

Full content: El Colombiano

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.