Colombia’s experience with ridesharing offers lessons for other jurisdictions/Shutterstock

By Isabella Coronado Doria

March 26, 2025

Around the world, Uber has faced fierce resistance from traditional taxi industries threatened by what they deem unfair competition, leading to protests, legal battles, and, in some cases, violent clashes. In Colombia, this tension escalated dramatically in 2017, when a taxi driver smashed the window of an Uber vehicle with a brick, injuring both the driver and passenger—an incident that fueled a nationwide debate on the legalization of ridesharing apps.

Eight years later, after a protracted, politically charged legal battle between the national taxi union and Uber that saw ridesharing bans imposed and overturned, the legal status of these platforms remains uncertain, even though apps like Uber, Didi, and Cabify continue to operate in Colombia after the Supreme Court ruled in 2023 that the use of technology alone cannot be classified as an unfair business practice.

However, app drivers still face harassment from both law enforcement and taxi drivers because, while the companies have the right to operate in the country, drivers and passengers are still subject to penalties since their activity remains unregulated.

In some ways, hindering Uber’s activity in Colombia is comparable to telling people to abandon the internet and go back to encyclopedias. It highlights the perpetual tension between the status quo and disruptive technology.

Colombia’s case is further complicated by Uber’s history of aggressive expansion tactics and regulatory evasion strategies. The global debate over Uber’s business practices reached a turning point in 2022 when The Guardian and other media outlets published the “Uber Files,” revealing how the company lobbied politicians, exploited legal loopholes, and engaged in questionable tactics to disrupt local taxi industries worldwide. While Uber has since rebranded itself as a more cooperative player in regulatory discussions, the legacy of its early years continues to shape resistance to its legalization in many countries, including Colombia.

In Colombia, the debate has also been heavily influenced by the power of the national taxi union, the Association of Taxi Owners and Drivers. The union’s political clout stems in part from its frequent use of paralyzing strikes to make demands of the government by blocking major transportation routes in the main cities, making it nearly impossible for traffic to pass. This pressures the government to make quick decisions, especially to ensure the passage of essential goods, ambulances, and others.

The challenge for Colombia’s government is not just about regulating Uber but addressing the deeper economic anxieties fueling opposition to it.

These strikes always demand measures from the government against ridesharing apps like Uber based on allegations — echoing complaints that have fueled backlash in other countries — that the business model unfairly exists outside government regulation, licensing standards and tax regimes. In many cities, drivers who have invested heavily in taxi licenses or medallions have seen the value of their assets collapse. In Colombia, where taxi ownership represents a major financial investment, many drivers fear that fully legalizing Uber will cost them their livelihoods.

Despite these allegations, the evidence we find in other countries like Canada shows that the legalization process of these apps, on the contrary, opens the door for the regulation of these services, enabling the government set rules for app drivers similar to those for taxi drivers, making things fairer for everyone.

An example of this is the regulation of ridesharing apps by the City of Toronto, which includes elements such as the requirement for licensing for Uber drivers, background checks, mandatory insurance for cars used for ridesharing, and regulation of prices, among others. The conditions that made this possible was that the app was going to continue operating anyway, so municipal authorities concluded it would be better to at least regulate it.

The response of the Colombian taxi drivers to such approaches has been that the issue is not regulation itself but the government’s ability to implement effective regulations that level the playing field between taxi drivers and Uber in the transportation market. In other words, the taxi union does not trust that the Colombian government can develop a strategy that takes their interests and needs into account.

Given the urgency of achieving regulation considering the rapid growth of artificial intelligence and generative technology, the government will need to devise ways to build trust with taxi unions quickly. The challenge for Colombia’s government is not just about regulating Uber but addressing the deeper economic anxieties fueling opposition to it.

As Colombia faces growing technological disruptions across multiple industries, the government must find a way to regulate these platforms while ensuring economic stability for affected workers. The outcome of this debate will serve as a test case for the country’s ability to adapt to future challenges in the digital economy.

Isabella Coronado Doria is an economist and public policy professional from Universidad de los Andes and current master’s student at McGill University. Passionate about educational policy, she has worked as a research assistant and volunteered with Colombian non-profits to improve learning communities.