“We will make a detailed review of the ruling to define our next steps, particularly in relation to the model available in Colombia since February this year,” said Über in a statement

The leader of Colombia’s largest taxi cartel Hugo Ospina previously had said proudly in a video he published on Facebook that the administration of President Ivan Duque agreed to shut down Uber and similar platforms in a deal that the taxi syndicates would not join last November’s anti-government protests in exchange for Duque doing their bidding regarding banning alternative mobility such as Picap, Uber, Lime, and others. The Superintendence of Commerce is an executive branch function under the Presidency, but the Superior Court of Bogotá is independent of presidential authority.

“We reiterate the urgency of having clear rules that allow the growth of these sectors powered by technology to be promoted and thus transform Colombia into a more inclusive, safer society with better cities. Our intention will continue to be to maintain an open dialogue with the Colombian government, Congress, local authorities and all stakeholders, in order to share all our global experience to build a modern regulatory framework for all collaborative mobility platforms,” said Über of Colombia in a statement. “We will make a detailed review of the ruling to define our next steps, particularly in relation to the model available in Colombia since February this year.”

“Given the difficult economic situation that we face due to COVID-19, Uber seeks to be an ally of the country to recover the economy and offer opportunities to generate additional profits for thousands of people. Those who have been affected by the crisis find Uber a great alternative at this time of economic recovery,” added the company.

New Über service tiers in Colombia, as of February 2020 (in Spanish)

Rather than ride hailing, the passenger technically is renting a car with a driver for a short time under the new model. The application thus, facilitates a contract between the driver, who now becomes a vehicle lessor, and the passenger, now the lessees.

Über has branded its Colombia offering with five tiers:

1. PorHoras: Renting a vehicle for the time of the passenger’s trip.
2. UberYa: Renting a vehicle with a driver for a particular destination.
3. Economy: Über service with older vehicles at a lower price.
4. Comfort: A premium alternative similar to Über Black in other countries.
5. XL: Larger vehicles for groups or passengers with additional luggage.

In a statement, Über emphasized that it has paid $70 billion COP in Colombian taxes. Finance Colombia previously reached out to Colombia’s Superintendencia de Industria y Comercio for comment on this issue but the agency declined comment.

Taxi Syndicates Furious, Call For National Strike

#ULTIMAHORA Para el 16 de marzo, gremio de taxistas convoca a paro nacional. Aquí el pronunciamiento oficial ⤵️#TaxisVsUber #UberVuelve pic.twitter.com/ZtkeeQ7UGv

— Andrés Currea H. ? (@CurreaAndresH) February 21, 2020

Colombia’s Taxi Cartels, led by frontman Hugo Ospina and his APCT (Association of Taxi Owners & Drivers), have reacted angrily, and called on a national taxi strike for March 16 across the country. The taxi organizations did not participate in the mass protests of November 2019, because according to Ospina, they made a deal with Colombia’s President Ivan Duque, that they would not participate in the protests if Duque’s administration booted Über and other similar ride sharing services such as Picap from the country.

In some parts of Colombia, especially Bogotá, taxi drivers have an infamous reputation with visitors and locals alike for rude and criminal behavior, adding to the popularity of alternatives such as Über.

This comes as Uber has announced plans to abandon Colombia and the Duque Administration moves to liquidate local alternative Picap, just a day after it ruled against Uber. Very popular with both riders and drivers, the government, backed by taxi syndicates ruled such platforms “unfair competition” because they interfere with the taxi monopoly. Colombians and foreigners alike mistrust the taxis, especially in the capital of Bogotá where they suffer an infamous reputation. In November,  an organized crime ring of taxi drivers was captured for robbing foreigners in the city center of over $140,000 USD.

In 2014, seven Bogotá taxi drivers were extradited to the US for murdering an off-duty DEA officer in a botched robbery attempt.

Taxi union leader Hugo Ospina already declared war on the scooters after winning a court ruling against Uber last month. “We are going to sue the technology platforms that the state declared illegal!” said Ospina in a radio show last month by Semana magazine.

Ospina said proudly in a video he published on Facebook that the administration of President Ivan Duque agreed to prosecute Uber in a deal that the taxi syndicates would not join the November anti-government protests in exchange for Duque doing their bidding regarding alternative mobility such as Uber, Picap, Lime, and others.

According to Lime they faced difficult operating conditions in Bogotá even without Ospina’s threats. “The district did excellent work in designing the first version of regulations. Still, we are concerned that other companies aren’t following the laws, and the district (of Bogotá) hasn’t taken action. All of that is causing illegal scooters to circulate,” Lime general manager for Colombia Enrique Cuéllar told news daily El Espectador.

Lime’s CEO Brad Bao stated in a blog post that the company was leaving Bogotá along with 12 other markets, roughly 10% of the 120+ cities where the scooter company operates:

“While the vast majority of our 120+ markets have adopted micromobility transportation solutions quickly and are profitable, there are select communities throughout the world where micromobility has evolved more slowly. For this reason, we have made the difficult decision to close 12 markets across the globe at this time. They include Atlanta, Phoenix, San Diego and San Antonio in the United States; Linz, Austria in Europe; and Bogotá, Buenos Aires, Montevideo, Lima, Puerto Vallarta, Rio de Janeiro and São Paulo in Latin America.”

See also: Guest Opinion: A Signal of Caution For Direct Investment in Colombia—Über VP of Global Public Policy

Above photo courtesy Lime

In a statement issued by the ministry on December 21, the decision to shutter Picap was due to “the critical situation in legal, financial and accounting matters, and above all to provide a solution to the safety of users of the transportation sector, and legality through adequate provision of transportation service.

Unlike Uber, Picap offers an option for motorcycle rides in addition to private cars. “The activity undertaken by CAP Technologies is illegal because it is not authorized to provide public transportation service, and also because the law prohibits passengers on a motorcycle, said the ministry in a statement, even though it is generally legal in Colombia to carry passengers.

These moves come not because of impartial arms-length investigations according to the head of the taxi syndicate Hugo Ospina, but because of a deal cut between the taxi leaders and President Ivan Duque for the taxi leaders not to join other unions and groups in massive protests against the deeply unpopular government.

Ospina said proudly in a video he published on Facebook that the administration of President Ivan Duque agreed to shut down the platforms in a deal that the taxi syndicates would not join the November anti-government protests in exchange for Duque doing their bidding regarding alternative mobility such as Picap, Uber, Lime, and others.

In addition to ride hailing platforms, Ospina declared war even on rented electric scooters after winning a court ruling against Uber last month. “We are going to sue the technology platforms that the state declared illegal!” said Ospina in a radio show last month by Semana magazine.

Bogotá suffers from world-class traffic jams, sometimes taking hours to travel short distances. The scooters are seen by many as a popular ecologically friendly alternative that moves commuters quickly through the city’s bicycle lanes. Other cities like Medellín don’t have Bogotá’s traffic woes but suffer from high pollution levels due to geography and other factors. Medellín sits in a valley for example, reducing air circulation and bringing pollution due to emissions to unhealthy levels.

• In November,  an organized crime ring of taxi drivers were captured for robbing foreigners in the city center of over $140,000 USD.
• In 2014, seven Bogotá taxi drivers were extradited to the US for murdering an off-duty DEA officer in a botched robbery attempt.

Taxi services in Bogotá suffer a very poor reputation, contributing to the popularity of ride hailing services, which are at times even more expensive—at least compared to official rates. Unlike Medellín and other Colombian cities, taxi operators in Bogotá use a fare system that makes it extremely difficult for the passenger to ascertain the correct legal fare, which is not what the meter says, but based on a formula on a chart that is indecipherable to many locals and most foreigners.

See also: Guest Opinion: A Signal of Caution For Direct Investment in Colombia—Über VP of Global Public Policy

Above photo courtesy of Supertransporte, Superintendencia de Transporte