Uber To Deactivate App. in Colombia

Uber will stop operating in Colombia starting Saturday, Feb. 1 following repeated clashes with regulators and taxi activist groups in the the Latin American country.

Following a court ruling in the favor of taxi drivers, they will switch to similar apps like Didi, Cabify and Beat ahead of Uber’s closure.

Experts say the situation with Uber in Colombia reflects the slow pace of introducing legislation related to the needs of new sectors of the economy, such as applications, and services sectors that send a negative message to investors.

Ride-hailing mobile apps are the only source of income, providing a means of earning for thousands of Colombians.

Colombia has one of Latin America's highest unemployment rates, with a rate rising above 10%.

[caption id="attachment_107258" align="aligncenter" width="2560"] Taxi drivers protest against the US company Uber[/caption]

Uber said earlier in statement it operates 88,000 drivers in the country, who serve more than 2.3 million users.

Last year, Uber canceled plans to build a $40 million support center, providing 600 employment opportunities, citing regulatory uncertainty.

“It’s very important that we focus on what citizens want,” one Uber driver said, adding that the company's departure is not a good sign for Colombian start-ups.

On its part, the government said that the US company and similar apps do not operate within the Colombian law.

“We cannot modify laws by decree,” Transport Minister Angela Orozco commented.