City considers expanding the taxi fleet as owners complain about Uber’s entry into the market

Cuenca needs more taxis. That’s the assessment of the city’s mobility office based on a growing number of passenger complaints. “We simply do not have a large enough taxi fleet to handle demand, especially during peak hours and during rainy weather,” says Pablo Carvallo, director of mobility. “Customers tell us of they are forced to wait as long as 20 minutes for a taxis and this is not acceptable.”

The Cuenca transportation office and transit police are increasing efforts to fine owners of unauthorized taxis.

In the past, the union of taxi owners has opposed increasing the fleet of an estimated 4,500 licensed taxis, but Carvallo says the interests of the public must come first. “We are currently analyzing increasing the number of units and this will be part of consideration of a fare increase early next year,” he said.

He added that the population of Cuenca has grown more than 150,000 since the last increase in the taxi fleet. “Obviously, there must be an adjustment based on changing demographics,” Carvallo said.

On Tuesday, following complaints by the taxi union of Uber’s entry into the market, Carvallo repeated the city’s position on the app-based taxi service. “As long as they are authorized and licensed and pay the appropriate fees, taxis owners can work under any internet app they choose,” he said. He added that several existing taxi cooperatives use apps to manage their operations.

In a press conference, the Union of Taxi Transport Cooperatives claimed that Uber taxis constituted unfair competition. “Many of them are informal and do not meet the strict requirements that other owners must live by,” a spokesman said. “We are demanding more enforcement against informality.” The union also claimed that Uber does not follow passenger safety requirements established by national law.

Carvallo agreed that informality in the taxi market is a problem and said his office and transit police are stepping efforts to identify and fine owners of unauthorized taxis. “This is an ongoing problem and we told the taxi union we are reemphasizing enforcement,” he said, adding that “at least 20” offenders have been fined since Monday.

None of those fined operated under the Uber app.