Level the playing field

EDITORIAL

“BOGOTA TAXI DRIVERS block streets in Uber protest”. “Spanish taxis block streets in anti-Uber protest”. “Gatwick Airport taxi drivers strike over Uber poaching”. “Taxi drivers plan total shutdown of Barcelona over Barca’s deal with Uber”. “Hong Kong taxi drivers threaten to strike over ride hailing services like Uber”. “Greek taxi drivers stage protest against Uber”.

These news headlines from all over the world date from yesterday to as far back as 2016.

They illustrate that the concerns some of Barbados’ taxi drivers have raised since news broke that Uber was entering this market, are not unusual or irrational.

That is the reaction this ride-sharing company and other disrupters like online accommodation marketplace AirBnb have triggered among traditional market actors and regulators who often have to play catch-up.

Barbadians need not look any further than neighbouring Trinidad and Tobago to learn that a company the size of Uber, which reported 2024 revenue of US$44 million and a net profit of US$9.9 billion, will not flourish everywhere.

Uber suspended its operations in the twin-island republic in May 2018.

That country’s Ministry of Works and Transport said in a statement then that the ride-hailing company had to realign its operations to conform with local laws, including disclosing details on its insurance coverage certification for passengers and drivers, and its taxation structures. An Uber Trinidad representative cited a lack of a proper environment for innovation and technology to thrive in Trinidad and Tobago.

In Barbados’ case, Minister of Transport and Works Santia Bradshaw has stressed that Uber is required to operate according to the laws of Barbados, like all other ride-share apps that enter this market. She noted that under Barbados’ laws, only registered taxis issued with the required permits are allowed to provide taxi services and that applies to all service providers operating under a ride-share app.

Therefore, personal vehicles are not allowed to provide Uber service in Barbados. She added that such service providers must also comply with the taxi rates set by Government.

Uber, in turn, has said that its service here, called the Uber Taxi, is exclusively for licensed taxi drivers and that fares displayed on the app will strictly follow regulated rates set by the Transport Authority, ensuring compliance with local transport laws.

Part of Barbados’ attractiveness to Uber will no doubt be the fact that the island is a leading tourist destination. With about 4 500 taxis on the road and 5 000 commercial rental vehicles in operation, entities which already cry out for limited earnings, there is no guarantee its business model will succeed.

Business disrupters will continue to spring up domestically and via market entry from foreign entities. Government must ensure not only that participants follow the law, but must modernise Barbados’ laws to ensure the island continues to be an attractive place for local and foreign investment.

While competition is a reality in business and can contribute to higher service standards, such investment must be welcomed in a way that does not create an uneven playing field for local participants.