Uber: Yes or No?

Six months after the vice president of El Salvador himself welcomed the company into the country, the transport authorities now say the service is illegal and intend to suspend it.

Friday, November 10, 2017

The Deputy Minister of Transportation, Nelson García, warned that they will start to fine and confiscate vehicles that are providing private transport services via the application, because it is considered illegal in the country. 

The internal incongruity of the Sánchez Cerén administration is such that a few hours after the announcement of Vice Minister García, authorities at the Ministry of Economy met with representatives of Uber "in search of mechanisms to regulate and facilitate their operations in the country."

A statement from the Ministry of Economy and Commerce states that "...Minister Tharsis López made the technical team of the MINEC available to UBER representatives in order to help elaborate and promote a reform to the legal framework, in order to reach a consensus with the VMT and initiate the corresponding procedure."

See also: "Uber and business freedom"

Elsalvador.com reports that "...It is illogical how the government contradicts itself, as today the vice minister of transportation made this announcement, but in May, the vice president of the Republic, Óscar Ortiz, welcomed Uber and applauded the fact that it gave Salvadorans job opportunities." See: "Uber is well received in El Salvador"

More on this topic

Boom in Sharing Economy

June 2018

The implementation of two applications used for home delivery services in Guatemala reinforces the irreversible trend towards better use of available resources through innovation and technology.

One of the applications now available is Uber Eats, which lets people place orders from different restaurants with varied prices. Another of the companies that has started up is Glovo, dedicated to the purchase, reception and shipping of several product categories.

Uber is Well Received in El Salvador

May 2017

While Costa Rica still has not defined a legal scheme to regulate the mode of transport offered by Uber, in El Salvador the company has started operations with the government´s approval.

The technology company that offers a private transportation network started operating in San Salvador on May 9, with the backing of the Sánchez Cerén administration. 

Costa Rica: More Obstacles for Uber

October 2015

Although the company intends to operate under the format of "self-sustaining community," the criteria of the Attorney General is that "all paid transport is a public service."

The judgment issued by the Attorney General's Office also provides for possible sanctions against Uber for providing transportation services illegally.

Businesses in Favor of Uber

September 2015

Panamanian private sector representatives are defending the mode of operations of Uber, who announced the launch of its corporate transportation service in Panama City.

As in Costa Rica, the arrival of Uber has generated resistance among traditional public transport sectors, such as taxis.

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