Taxi apps in Latin America.
Uber in El Salvador agreed on November 10 to abide by existing operating laws, after Vice Transport Minister Nelson Garcia warned that vehicles could be seized if they did not comply. Driver apps are controversial with traditional transport companies in Latin America, as elsewhere, and legislation often lags behind their new business model, exacerbating tensions with taxi drivers in particular. The service is nevertheless growing rapidly across the region, with local rivals positioning themselves to challenge Uber’s market dominance.
Smartphone apps will grow even further in popularity because they address key needs for urban dwellers.
Uber will struggle to shake off safety concerns in many Latin American cities in which it operates.
Local rivals will consolidate further in an attempt to compete effectively with Uber.
