Uber, Competition and the Free Market

In El Salvador reform of legislation on passenger transport has been proposed to "incorporate business models based on new telecommunications technologies."

Monday, September 18, 2017

From a report by the Superintendency of Competition in El Salvador:

The Board of Directors of the Superintendency of Competition (CD) issued an opinion on land transport regulations, in relation to the provision of passenger transport services required by users through the use of digital platforms.

The opinion of the CD indicates that the sectoral regulations do not contain rules that allow the incorporation of business models based on new telecommunications technologies, as in the case of digital platforms through which it is possible to require transport services.

Platforms in operation since this year in El Salvador, such as Uber and Vamos, are disruptive innovations that redefine the passenger transport market, which requires an evaluation of the applicable regulations from the perspective of competition.

Read full report (in Spanish).



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In Panama, a bill seeks to regulate messaging services offered through technological platforms, such as UberEats, Appetito 24, Glovo or Domicilio Don Juan.

The platforms of digital messaging services, such as transport activity, will be regulated, according to the essence of Draft Law 179 proposed in the Transport Commission, informed the National Assembly on October 14.

Collaborative Economy: Plan to Regulate Uber

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Arguing that traditional taxi services and Uber should coexist simultaneously, the government of Costa Rica presented a proposal to regulate the collaborative transport service.

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Freight Transport: Threatened?

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The Uber technological platform, which in Central America is currently transporting people and food, is planning to expand its service offerings to the freight transport business.

Uber and Uber Eats, platforms for transporting people and delivering prepared food, respectively, are already operating in the countries of the region. However, the U.S. company's new bet for Latin America is to use Uber Freight to transport cargo.

Sharing Economy in Latin America

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Collaboration through innovation and technology allows for better use of available resources, providing a new opportunity to narrow the gap with the developed world.

From a report by the Inter-American Development Bank "Sharing Economy
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"... Collaborative Economics (CE) not only provides a promising new learning framework for Latin America and the Caribbean, but also a space for the region to be part of the Fourth Industrial Revolution ... This new paradigm offers significant opportunities to promote social inclusion, promote entrepreneurship and unleash a wave of innovation that can help solve some of the major social, economic and environmental problems of the inhabitants of the region. "

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