Municipal buses end service three hours early, blaming rising costs and inaction by city government

Thousands of Cuenca bus passengers were stranded Monday night as urban bus companies ended service at 7 p.m., three hours early. The union representing bus owners says its members are losing money due to rising diesel prices, higher taxes and lack of action by the municipality to raise fares. It says it will maintain earlier operating hours until it “gets relief” from the city.

In response, the city’s Mobility Company (EMOV) threatened to fine bus owners whose units do not complete their full daily schedule. It also said it would provide seven city-owned buses to help bus passengers get to their destinations after 7 p.m.

The bus union, the Cuenca Chamber of Transport (CTC), threatened to maintain the shortened schedule until the city raises fares to “a level that covers increased costs for fuel, fees and other inflationary factors.”

City bus fare has been frozen at 30 cents for 11 years, with the city providing a $600 monthly subsidy per bus since 2020. In December, the municipal council voted to increase payment to owners to 40 cents per ride with a 10-cent subsidy, maintaining the 30-cent fare for the public. The higher subsidy has yet to be paid to owners, EMOV says, citing the “lack of technical data” from some owners.

Tobias Campoverde, CTC vice president, says bus owners do not want the subsidy because it does not cover costs and because they do not trust the municipal government. “We never agreed to that subsidy and cannot count of the city to make payments in a timely manner,” he said, claiming that payment of the current subsidy is often three or four months late. “We can count on passengers to pay on time, but not the city,” he says.

In addition to rejecting the city’s subsidy plan, CTC says a new study should be conducted to determine a “reasonable fare.” It says the study the city council used in deciding the December subsidy, carried out by the University of Cuenca, was four years old. “Since that data was collected, diesel fuel has risen by more than 100%, the VAT was increased by three cents and the national government ended fuel support payments,” Campoverde says.

He added that “several” municipal counselors agree that the new 10-cent subsidy is not enough to cover owners’ costs. “Working with us, they have developed a plan that recognizes current circumstances, but the mayor has not allowed it to be discussed by the full council.”