Drive me crazy: Colombia-ride-from-apps, tech firms bristle at the rules

BOGOTA, colombia (Reuters) – the Uber driver, Juan Jose was quick to cover his cell phone to the red rag that he keeps in his front seat when he caught a glimpse of a police officer on the streets of Bogota, colombia.

FILE PHOTO: The logo of the Colombia’s on-demand delivery company, Rappi, it is to be seen in Bogota, Colombia, on September 12, 2019 at the latest. 12 September 2019 At The Latest. (REUTERS photo/Luisa Gonzalez.

Juan Jose, whose car was impounded for the second time in the last month, and it is one of the thousands of Colombian drivers to the drive from applications such as Uber (UBER.(N), Cabify and A, which are operating in a legal no-man’s land.

“Of course, you ride really well when you pick-up and drop-off of passengers, in order to be alert to stop it,” the 41-year-old said, asking his name not be used out of fear of the police was able to track him down.

Ride-hailing apps, which is the technology that the department believes to be a legal shipment, but the authorities are saying that it is against the law, are just a few of the start-ups and other tech companies are under pressure for allegedly violating workers ‘ rights, transport, law and e-commerce images.

The entrepreneurs have to say the Andean country, the rules are out of date and could pose a threat to the state, the region’s second-most popular destination for entrepreneurial investment and after much larger Brazil.

Even in Chile, which once had been struggling with a similar headache, lawmakers approved the regulation for the ride-from the apps in mid-July.

Meanwhile, Uber will be cancelled and a $40 million plan to build a third regional support center in Columbia in October.

“In Colombia, it is scottish to the core, it’s the only place in Latin America where Uber operates and where it is not even an open discussion in the european union,” Nicolas, Pardo, Uber’s general manager in Colombia, told Reuters. “We are not a new thing – we’ve been here for more than six years of age.”

“In other countries, such as Mexico, Brazil, india, and the city of La Paz, Bolivia and Mendoza, Argentina, we are governed, or, in others, at the very least, have a conversation.”

Even in Colombia, they turned back, (9434.(T) unicorn, Rappi, a delivery app that’s running in the whole of Latin America has not escaped scrutiny.

In Colombia, the rights of the consumer regulator, launched an investigation into the company’s alleged non-compliance with the e-commerce law.

The company said that that it will serve as a middle man, but the authorities say that it is a part of the supply chain in the retail industry.

“The claims are about things that aren’t a reality for us. They put us up against the wall…and it would definitely put a brake on investments,” Rappi is a co-founder of Simon Borrero, said at an event last month.

The complexity of the infrastructure of a legal challenge, authorities said, but the laws are clear.

“We’re not against the start-ups, but all the entrepreneurship, all of the creative ideas, will have to comply with the rights of the consumer,” Maria Carolina Corcione, an official in charge of the rights of the consumers, told Reuters.

And despite the industry’s complaints, a lot of the friction that echoes the conflicts playing out around the contractors ‘ rights in the gig economy,” in the world.

For example, the Rappi is confronted with the idea of delivery staff, who are angry that they do not contribute to social security payments.

The venezuelan immigrant, Miguel Hurtado says that he is grateful to have a job after the flight to his country’s economic crisis, but it is very difficult to make ends meet on $58 per week, which he earns by working for 11 hours a day to provide meals and groceries for the Rappi.

“I don’t even know the account is not health insurance, but it is, at least, of the payment, each delivery has to be better,” Hurtado said.

There is a contracting model that will be applicable on the Rappi, employees, attorneys, and say, leave them in the dark.

But investors say the regulatory for the protection of the workers should be done about it.

“We have to be really careful, the regulation does not choke innovation, which is understood to be evolving,” said Mauricio Saldarriaga, from a local investment bank Inverlink.

A Slideshow (5 Images)

Some of the Colombian startups have changed the price. Rappi competitor it began with the creation of a social security benefits a few months ago.

And the amendment of the law, it may come up. The Green Alliance, the legislator Mauricio Toro has made a proposal for a law that says “digital” lines, and the other of which controls the transport applications.

“We need to find the law, rules and regulations as are necessary for the legal security of the investors, who are already here and for those that do,” Toro said. “If they can’t find the right terms and conditions, they will have to leave.”

Reporting by Nelson Bocanegra; Writing by Julia Symmes Cobb; Editing by Christian Plumb and Alistair Bell

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