Uber Technologies Inc. launched a campaign against new regulations in Chile that it says will increase prices by 50% and force one in two of its more than 100,000 drivers out of work.
Regulations on minimum engine size and maximum age of cars will prevent many drivers from working, Uber Chile said in an email in response to questions sent by Bloomberg. Other ridesharing companies such as Cabify are also protesting the measures. Uber even created a website called “let me move” to gather signatures against the measures.
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In January, lawmakers passed a new law governing ridesharing apps, and now the Ministry of Transportation has until Jan. 19 to come up with the exact regulations that will govern the industry. It is those measures, over which the industry claims it has no say, that are now at the heart of the issue.
“Uber and the entire industry have supported the EAT Law, but the regulations, which were drafted without consulting platforms, users or drivers, will leave half of them unable to continue generating revenue,” the company said.
Chile has long been the scene of clashes between conventional cab drivers and Uber drivers, as the former complain that ridesharing apps are exempt from the strict licensing rules that govern their sector. This is part of a global problem, as governments around the world look to regulate this emerging industry.