By Anthony Morgan

Ride-hailing company Uber has no approval to operate in Jamaica, despite them recently announcing that their app would soon be made available in Kingston, St. Andrew and St. Catherine.

In a press release dated April 2021, Uber said anyone 21 years and over, who owns a 2010 vehicle or newer and has a valid driver’s license and registration, could soon start earning some extra cash as one of it’s drivers in the island. 

However, Corporate Communications Manager at the Transport Authority Petra- Kene Williams told Kalilah Reynolds on Taking Stock that they are not in receipt of any application from Uber to operate any public passenger service locally.

Corporate Communications Manager at the Transport Authority Petra- Kene Williams

“We would know if they made an application to operate as a hackney carriage company or some permutation of that and we would also know if they are making applications for licenses because we process the licenses. We have received no applications in that regard,” said Williams.

According to her, all drivers who sign up with Uber in Jamaica would be required to have a Public Passenger Vehicle (PPV) license and badge, based on the Road Traffic and Transport Authority Acts.

Similar laws have posed challenges for Uber in other Caribbean jurisdictions including Trinidad and Tobago. The company stopped activities there in 2018 after operating for almost a year and a half. It’s understood they were operating in contravention of that country’s Motor Vehicle and Road Traffic Act.

“We hope all the drivers signing up for that App are cognizant of what the laws of the land say and what they will be required to do to operate legal public transportation services,” urged Williams.

Uber first reached out to Jamaica’s Ministry of Transport and Mining (MTM) with a proposal to tap into the local market back in 2017. A technical team from the Ministry had reviewed that proposal, and their last exchange was around 2018 according to Williams.

She said the authorities are not assuming the same proposal applies this time around, and added that the ride sharing model of the company would be the service up for approval based on their recent announcements.

“Uber has several permutations  of how it operates in different jurisdictions. The recommendation from MTM is that Uber would be best suited to engage local operators and operate in the same context as a hackney carriage company where you get private owners to sign up to this app, they do their own screening and track and so on,” she said.

Meanwhile, Williams said the Transport Authority has the capacity to conduct covert operations to identify any illegal operations should the company decide to go ahead with its rollout without approval.

“We would prefer not to go that route. We would want Uber to approach us the right way and operate the right way. We welcome all newcomers to the market because that helps to improve the sector. But we want persons to do so legally to ensure the protection of the commuting public,” she said. 

Senior Wealth Advisor at Ideal Portfolio Services, Orick Angus

If granted approval to operate in Jamaica, Uber would also be subjected to the pricing threshold under the law. This means the MTM and Transport Authority would regulate their fares, which may not be in the best interest of potential drivers with Uber set to get 30% of the revenue that each makes.

Senior Wealth Advisor at Ideal Portfolio Services, Orick Angus, in THE ANALYSTS discussion on Taking Stock, said that condition could also keep Uber from successfully launching in the island.

“It all comes down to what that 30% equates to; if it’s feasible and will drivers be willing to pay over that amount because it’s a large sum,” he said.

At the same time, President of the Jamaica Association of Transport Owners and Operators, JATOO, Louis Barton said Uber has the potential to help develop the local sector. He said he’s not concerned about any huge loss of drivers to the company.

“I don’t think it will affect us negatively because the operators who work in Jamaica are confident of their type of operation. They have their own customers despite it not being as technology advanced as Uber but you have drivers that pick up their passengers at their home, they take their children to school, they put the keys in their doors,” he said. 

President of the Jamaica Association of Transport Owners and Operators, JATOO, Louis Barton

“I don’t fear the competition. I really think it can advance us…As long as we’re on a level playing field, it can only improve the whole sector and economy,” he added.

Local hackney carriage operators like 876 On The Go, Get There and Ride Ja currently have similar models to Uber, and the JATOO President believes more operators could be swayed to incorporate technology into their operations if Uber does enter the market.

“I’m really confident that something beneficial can come out of this. Whether Uber comes in or not, the improvement that we forecast on the horizon can only be beneficial to Jamaica,” he said.

Uber was launched in 2010 and its app is currently available in over 10,000 cities worldwide.

The company’s revenue has fallen 11% due to the ongoing pandemic and it’s debt margin has grown to almost US$10 billion. However, industry analysts believe the company remains on a growth path and should see a reversal in its fortunes as the world recovers from the global health crisis.

Uber has declined an interview request from Taking Stock, stating that they don’t have a spokesperson available at the moment. 

A statement from Angeline Salado, Uber’s Lead Business Consultant in the region, simply reiterated the information in their press release. 

“At Uber, we are happy to announce the application will soon be available in Kingston, St. Andrew, and St. Catherine areas as an option for those looking to move around the city with a safer experience. Today, we have an open funnel for lessor partners who see in the Uber app an opportunity to earn extra. We will soon provide more details about the availability of the app in Kingston,” said the statement. 

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