Myanmar: Uber expands to Myanmar beginning May 11

Event

On Thursday, May 11, the app-based ride-sharing service Uber launched operations in Myanmar. As many people in modernizing Myanmar do not have credit cards (typically used to pay for Uber via the app), passengers will be able to pay via cash or local bank transfers.

Notably, Uber will be launching with full government support, having agreed to hire only government-approved taxi drivers in order to avoid the legal issues (and sometimes disruptive or even violent opposition from established taxi networks) it has typically faced when launching in other countries using drivers who may not have the licenses required by established taxi networks. According to Myanmar’s government, Uber’s arrival is part of an overall initiative to improve transportation networks across the country.

Context

Myanmar offers a potentially lucrative new market for Uber and other internet-based services, as the country has witnessed an enormous jump in internet and cell phone use and accessibility since Myanmar’s democratization in 2011.

By coordinating with Myanmar’s government, Uber will be launching under more favorable conditions than it has in many other countries where the company has faced fierce opposition from existing taxi industries. Many taxi driver unions have resisted Uber's entry into the market, sometimes threatening and using violence against Uber drivers. Regulatory issues have also prevented Uber from entering other emerging markets.

Advice

Travelers in Myanmar are advised to take the above information into account.

More generally, it should be noted that many Western governments and Myanmar authorities advise travelers against all but essential travel to Rakhine state except the southern townships of Kyaukpyu, Ramree, Munaung, Toungup, Thandwe (including the tourist resort of Ngapali), and Gwa. Individuals present in western Myanmar should avoid nonessential travel to the region bordering Bangladesh.