February 20th marked an important date forward for the Colombian job market, allowing for hundreds of positions to be re-attained. This followed after Uber Technologies Incorporated announced they’ve resumed transporting operations in Colombia, with a new service model that better suits government regulation. This model will enable consumers to rent vehicles from drivers, with the respective owner required to transport customers to various locations. Uber Technologies Incorporated was forced to alter its service model after the Superintendence of Industry & Commerce for Columbia determined that this company had broken competition rules.
Uber Technologies Inc didn’t respond well to being banned from operation in Colombia, with lawyers working for this company determining if they should challenge the ruling through “International Arbitration”. These lawyers expressed that Uber hadn’t broken any trade agreements with the United States and Colombia, that by suspending their services for one month, a potential of $250 million could be lost. Executives under Uber determined that this wouldn’t have been the best course of action and increase the potential delays. This is why strategic analysts for Uber created new alternatives, which will allow drivers to continue working and respond to growing demands.
The new model, which allows customers to rent vehicles through Uber Drivers, creates a legalized agreement through both parties. This agreement will be displayed through a virtual application, which confirms the point of contact. After this implicated process is completed, the customer and driver are connected under the newly formed contract. Various contracts are available, which include an hourly rental option or minute-by-minute service.
The Nationwide Backlash
Rulings made through the Superintendence of Industry & Commerce for Colombia accused Uber Technologies Inc of operating without the requirements needed for public transportation. Colombian Government Officials have refused to create legislation for ride-hailing applications, believing Uber is an illegal entity that must go through current legislation requirements. There are 88 thousand drivers under Uber Inc in Colombia, with more than two million customers.
However, these employed drivers are considered unemployed by government standards. The recent banning of Uber for one month has created sever backlash towards the Colombian Government, demanding that legislation be amended. The Cartel doesn’t approve of the rapid growth of employment that Uber is bringing, forcing them to have limited options for Drug Runners. It’s believed that government officials have been paid off regularly not to create legislation and ban Uber, with the ride-sharing company facing previous operational cancellations in Colombia.