Uber standoff

WESTERN BUREAU:

Simon Lawrence, president of the Jamaica Union of Travellers Association (JUTA), has voiced strong opposition to Uber International’s expansion into the tourism market in the western region.

Yesterday, he asserted that such a move threatens to undermine the entire industry, and JUTA is determined not to allow this transportation platform to wreak havoc on their livelihoods.

Lawrence argued that Uber, as a brand, lacks its own fleet of vehicles and aims to dominate the market by undercutting the value of transportation services. He highlighted the distinction between Uber’s part-time nature and the full-time commitment of traditional transport operators like himself.

For many JUTA members, transportation is their sole means of livelihood, and they cannot afford to be displaced by a part-time competitor.

With more than 1,000 members, 900 of whom are actively engaged, Lawrence said he was alarmed by the ease with which individuals can join Uber’s ranks without proper training or compliance with regulations. He pointed out that anyone can purchase a vehicle and sign up with Uber, bypassing the necessary licensing requirements.

“This not only undermines the professionalism of the industry, but also results in revenue loss for the government,” he stated.

FRUSTRATED

Lawrence expressed frustration at the Government’s apparent reluctance to address this issue, noting that the introduction of Uber was sanctioned by former Transport Minister Robert Montague. He questioned the wisdom of allowing an international brand to jeopardise local businesses and argued that the economic benefits of Uber’s operations do not sufficiently contribute to Jamaica’s economy.

“There needs to be regulatory measures to protect the interests of local transport operators and ensure the sustainability of the tourism industry in Jamaica,” he added.

He is calling for greater scrutiny of Uber’s operations and urged policymakers to prioritise the welfare of Jamaican businesses and communities.

Efforts by The Gleaner to get a comment from Uber proved futile.

Lawrence has received support from JCAL Tours President Brian Thelwell, who described the situation as a sad day in Jamaica for ground transportation providers.

“We are of the opinion that such move (Uber entering the market) is going to negatively impact our earnings in the sector, and persons who are indebted to institutions based on current projections will probably lose their investments,” said Thelwell.

CALL FOR INTERVENTION

He said pretty soon they won’t be able to service their liabilities from their earnings, while the free market is encouraged to bring about competitiveness that should see better products and product delivery to customers.

He, too, is calling for the Government, particularly, the minister of transport and the prime minister to intervene.

“Have we divested our birthright to foreigners?” he asked.

Thelwell said Uber has had such a negative impact on other countries that the app has been banned in some Caribbean nations.

The two organisations met with the Transport Authority a week ago expressing their dissatisfaction, and yesterday, the authority also expressed concerns about Uber’s screening mechanism and its scant regard for regulatory requirements, warning it would impose fines on those operating illegally.

The Transport Authority said after its meeting with the stakeholders – contract carriage groups – from across the country, they indicated there was no agreement in place with Uber, but rather, an offer was on the table which was being reviewed.

The Authority highlighted the absence of robust mechanisms within Uber’s platform for thoroughly screening both vehicles and drivers. This gap raises apprehensions regarding the safeguarding of the rights and well-being of individuals relying on these apps for public transportation.

In their media release, the Authority underscored the importance of regulatory compliance, noting that all motor vehicles engaged in passenger transportation for a fee must possess the requisite road licence. Furthermore, drivers must prominently display badges issued by the Transport Authority.

They have sent out a stern warning that any attempts to circumvent legal provisions will be construed as an intent to operate illegally, jeopardising public safety and order.

Transport Authority Managing Director Ralston Smith urged all operators intending to provide commuter services for a fee to promptly apply for their road licences, noting that failure to comply may result in fines of up to $200,000 or imprisonment for a duration of two months, as stipulated under Section 15B (1) for operating without a road licence.

However, Montego Bay Maxi Taxi, which is hoping to capitalise on the Uber windfall, in a letter to its members recently, said they stood at a pivotal moment that was presenting a unique opportunity for their community to thrive and prosper with the Uber partnership.

“Too often, we have witnessed the struggles our members face daily, grappling with the harsh realities of unemployment and economic uncertainty. But today, I stand before you with a beacon of hope – a chance for meaningful change and progress,” Gregg Connell, Montego Bay Maxi Taxi president, told his members.

“Our partnership with Uber International marks a significant milestone in our journey towards empowerment and economic prosperity. Through this collaboration, we have the opportunity to transform the landscape of transportation services within the tourism sector, offering our members a pathway to sustainable livelihoods and financial security.”

As partners of Uber, he said they would embark on a journey to redefine transportation services, providing airport arrivals and departures without being confined to the traditional taxi desks. Their members, he argued, would have the opportunity to venture into hotels for excursions and tours, breaking free from the limitations of traditional transportation arrangements.

“This partnership couldn’t come at a more opportune time. With new hotels being built and fresh investments pouring into the industry, we stand on the brink of unprecedented growth and opportunity. But seizing these opportunities requires unity and collaboration. We must come together as a community, forging powerful partnerships that will propel us forward.”

According to him, by joining forces with Uber International, they are charting a new course towards success and prosperity.

“Let us not allow doubt or hesitation to hold us back. Instead, let us seize this moment and embark on a journey towards a brighter future.”

Montego Bay Maxi Taxi was looking to sign up 50 members in time for their official launch on January 30.

Last evening, Connell told The Gleaner this was currently only a pilot.

“We are in a discovery phase and investigating [whether] the partnership is good for our members and the country.”

janet.silvera@gleanerjm.com