Latin America's coronavirus crisis is forcing Uber to adopt the taxi model it was meant to drive off the streets of cities from Santiago to Medellin.
MEXICO CITY/SANTIAGO - Latin America’s coronavirus crisis is forcing Uber to adopt the taxi model it was meant to drive off the streets of cities from Santiago to Medellin.
Uber has responded by racing to join Latin America’s taxi ranks, announcing a service in Chile in June after lockdowns sidelined its ride-hailing drivers there, as well as plans to launch taxis in Brazil’s financial center Sao Paulo. A spokesperson in Chile said Uber had launched a taxi service in Santiago and the port of Valparaiso in June, after a pilot began in 2018 in the southern city of Coyhaique.Latin America once appeared a safe haven for Uber in the face of stiff competition in the United States and regulatory battles in Europe.
Uber’s move to taxis may indicate that it “has realized it needs to take a localized, market by market approach as opposed to just applying the same model everywhere,” James Cordwell, a London-based analyst with Atlantic Equities, said. “The total quarantines resulting from the health crisis presented a mobility challenge in our cities in Chile and Colombia,” Didi said in a statement.
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