A Colombian court reversed an order that required ride-hailing company Uber to temporarily halt it’s activities in the country last year and to change the company’s service delivery model.
The Industry and Commerce Superintendency (SIC), which regulates fair competition and protects consumers, said Uber had violated the rules of competition in a taxi company lawsuit in December. In February Uber resumed transporting passengers with a new model of service that allows users to rent cars with drivers.
But in a decision dated Thursday, the Superior Tribunal of Bogota said the time limit for the taxi company to present its complaint had expired.
The SIC has repeatedly fined technology companies like Uber and Rappi this can mainly be attributed to the lack of regulatory framework for delivery and ride-hailing apps. DiDi and Cabify also operate in the country.
“It must be remembered that the situation of digital platforms in regards to the provision of these types of services is a regulatory issue that must be resolved via laws,” the head of the SIC Andres Barreto .
After recently announcing salary cuts and layoffs for its workers, Uber has furloughed hundreds of its employees in India, as coronavirus is chewing up sales. The company has announced that it will no longer operate with 600 workers in its Indian business, as the company is looking to slash expenses in the wake of a pandemic. The figure is 25 per cent of Uber ‘s total nation workers, Uber said Tuesday in a tweet. The announcements made by Uber follow an earlier statement made by its local competitor Ola, which had laid off 1,400 employees or around one in every third employee.
“Around 600 full time positions across driver and rider support, as well as other functions, are being impacted. These reductions are part of previously announced global job cuts this month,” Pradeep Parameswaran, President for Uber’s India and South Asia businesses, said.
Job cuts were implemented through out various departments from client and driver service, corporate growth, compliance, regulation, communications, and finance. As part of the company ‘s corporate turnaround program, Uber has retrenched about 6,700 employees this month. The American multinational ride hailing company said it gave the laid off workers 10 to 12 weeks of pay. Uber has provided them with medical benefits over the next six months.
“The impact of Covid-19 and the unpredictable nature of the recovery has left Uber India with no choice but to reduce the size of its workforce. Today is an incredibly sad day for colleagues leaving the Uber family and all of us,” the statement said.
But with easing lockdowns the company said on Wednesday trip requests were gradually picking up, but still remained significantly below prior year levels, as several countries start to lift coronavirus-led restrictions.
Trip requests are now down about 70% from a year earlier, slightly lesser than April’s 80% drop, Chief Executive Officer Dara Khosrowshahi said in a conference with Bank of America analysts. He said the company’s rides business is improving on a week-over-week basis, adding that the surge in food-delivery orders at Uber Eats recorded in the first quarter, showed no signs of slowing in May, easing concerns of investors who thought it could be a one-off trend during the pandemic.