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Canelones Regulates Ride-Sharing Apps: 500 Initial Spots and the Need to 'Update'
🇺🇾 Uruguay /Economy & Trade

Canelones Regulates Ride-Sharing Apps: 500 Initial Spots and the Need to 'Update'

From El País · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Canelones, Uruguay, is set to regulate ride-sharing apps like Uber and Cabify, 11 years after their introduction in Montevideo.
  • The new system, called STA, will initially offer 500 permits, with subsequent allocations via lottery, and requires drivers to reside in Canelones.
  • The regulation aims to integrate the existing, unregulated app-based transport system into a formal framework, with operations expected to begin gradually in June or July.

The Department of Canelones is taking a significant step forward by formalizing the operation of ride-sharing services such as Uber and Cabify. This move, occurring 11 years after these platforms began operating in Montevideo, reflects a pragmatic approach to integrating a service that has already become part of the daily lives of citizens. The "Sistema de Transporte de Aplicación" (STA) aims to create an orderly, gradual, and sustainable system, opening the door for various companies to operate within the department.

The idea of the Intendencia de Canelones is to regulate a transport system that is already updated in the citizenry.

— Alejandro AlberroDirector General of Transit and Transport of Canelones, explaining the rationale behind the new regulation.

Director General of Transit and Transport, Alejandro Alberro, emphasized the "interconnection" between Montevideo and Canelones, noting that neighboring departments have already established regulations. This regional perspective is crucial for a metropolitan area where residents often cross departmental lines for work and daily activities. The initial cap of 500 permits is a sensible measure to ensure a controlled rollout, preventing market saturation and allowing for adjustments as the system matures. The requirement for drivers to be residents of Canelones and the special license plates are practical steps to ensure local accountability and clear identification.

It is opportune to regulate the applications given a scenario of demographic and urbanistic interconnection in the metropolitan area, where Montevideo and Maldonado, bordering departments, have already legislated.

— Alejandro AlberroDirector General of Transit and Transport of Canelones, highlighting the need for regional regulatory alignment.

While the taxi union has voiced criticism, the Intendencia's decision to regulate rather than prohibit these services acknowledges the reality of citizen demand and technological advancement. The phased approach, including a 60-day period for selected drivers to submit documentation, demonstrates a commitment to facilitating entry for those who meet the criteria. This regulation is not just about adapting to new technologies; it's about ensuring that transportation services evolve to meet the needs of a dynamic and interconnected metropolitan area, providing more options for residents while establishing a clear framework for operators.

If a Canelones license plate is detected working in Montevideo, one is liable to receive a sanction.

— Alejandro AlberroDirector General of Transit and Transport of Canelones, explaining the departmental residency requirement for drivers.
DistantNews Editorial

Originally published by El País in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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