Uber Withdraws USD 40 Million Investment in Colombia | Financial Buzz

Uber Withdraws USD 40 Million Investment in Colombia

Uber Technologies, Inc. (NYSE: UBER) is an American multinational ridesharing company offering services that include peer-to-peer ridesharing, ride service hailing, food delivery, and a bicycle-sharing system

Uber Technologies has withdrawn its USD 40 Million investment in a support and safety center in Colombia due to lack of “regulatory stability”.  Ride-hailing apps have angered Colombia authorities as use of their apps are illegal but has not stopped widespread use in Colombia.  The ride-hailing apps have not been regulated but Uber specifically has been fined hundreds of thousands of dollars due to an obstruction in 2017 on a regulatory visit. 

Operations in Colombia were anticipated to begin in 2020 and provide 600 jobs the company said. “After six years looking for avenues for dialogue and in the absence of a roadmap to advance regulatory stability and legal security, we regret that we will need to relocate the destination of the investment,” Uber’s general manager for Colombia Nicolas Pardo said.

Uber has claimed that is has legal jurisdiction in over 80 locations within Latin America which include Colombia where it has 2 million clients and over 88,000 drivers.