Based on an economic study, Uruguayan authorities announce changes in the regulation of ride-hailing services

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The Municipality of Montevideo prepared a comprehensive economic study on the operation of ride-hailing services, including Uber, Easy Taxi, Cabify and Uruguay Present, and its consequences in the transportation sector. The study indicates that the ratio between the number of available taxis and the number of vehicles per app is 1 to 4, which means that at peak time the ride-hailing apps cover the demand that taxis cannot. In addition, most part of the drivers who work for ride-hailing platforms do so in part-time, and more precisely in peak hours, when the deficit of taxis has been historically high. Since May 2018, the admission of new permit holders to operate in ride-hailing platforms was suspended. Due to the restriction, ride prices have raised. After the study, the authorities decided to reverse the decision and give more permits to ride-hailing drivers. The department government also intend to prohibit drivers who do not own a vehicle from working with a third party’s car. The purpose is to avoid a relation of subordination between the car owner and the driver and preserve the driver’s self-employment status.

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