Panama: Uber drops 90 percent of drivers

Event

On Friday, November 24, the ride-sharing platform Uber deactivated the accounts of at least 90 percent of its drivers in order to comply with new regulations. According to Uber, the cutbacks affected at least 7200 of its 8000 registered drivers. An increase in prices on ride-sharing platforms, as well as a higher demand for official taxis, is likely.

Context

On October 31, the government passed a law requiring all ride-sharing and luxury transportation drivers to be over the age of 21 years, accept only electronic payments, and possess a special driver's license.

Uber has been banned in multiple countries on the grounds that it poses unfair competition to often-unionized taxi drivers.

Advice

Individuals present in Panama should anticipate higher demand for official taxis.

On a more general note, cases of taxi drivers kidnapping and/or robbing their clients have been reported in non-official taxis, and offending drivers may be armed. To minimize this risk, never take a taxi with tinted windows, ensure that the car's license plate as well as the drivers credentials are visible, and never take a taxi that already has an occupant (potential accomplice) or allow drivers to pick up more clients (a common practice).