This week a Colombian judge asked Uber to suspend the ride-hailing operation in Colombia. Earlier, a technology platform filed a lawsuit, alleging that Uber provided services through unfair competition.
The Colombian Bureau of Industry and Commerce (this oversees the market) said that Uber’s application violated competition rules. Earlier, taxi service platform Cotech SA sued the company. The department said in a separate statement: “Such behavior violates market regulation rules, brings a clear advantage in the market, and causes Cotech users to leave.”
Andres Barreto, the head of the department, said that although the directive requires Uber to suspend services immediately, it is not mandatory. He said Uber can still provide takeaway services locally.
Uber ‘s opinion about the issue
A spokesman of the company said: “For many years, we have been actively working to bring reasonable shared travel regulations to Colombia. We regret today the decision of the Colombian Business Administration, which failed to comply with Colombian laws and practices Process.” Uber has appealed the verdict.
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Uber’s business is facing global challenges. In London, one of Uber’s largest markets, regulators revoked Uber’s operating license last month. The department had previously concluded that it was inappropriate for Uber to continue operations. That is, because they failed to properly review drivers. That put passenger safety at risk. Regulators are currently considering Uber’s appeal. However, during that the company can continue to operate in London.
Earlier this week, a German court ruled that Uber violated local traffic dispatch laws. The company said they are working to resolve the violations and continue to operate its business.
Uber’s business in Colombia is not solid. In October, the company dropped plans to invest $40 million in a local support and service center. It says more than 2 million people use its services in Colombia, with 88,000 drivers.