No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessUber gets $200 million for international expansion

Uber gets $200 million for international expansion

The ride-hailing app Uber got a $200 million boost from investors Friday to help its push into emerging markets. The latest round comes from Luxembourg-based investment group LetterOne (L1), according to a joint statement.

The news of the multi-million-dollar investment came soon after the Costa Rican government met with several taxi unions on Thursday. During a news conference following the meeting, Presidency Minister Sergio Alfaro said Uber, valued at $50 billion, has a “strong negative social impact” on Costa Rica.

“Our goal is simple: reliable and affordable transportation everywhere, for everyone, at the push of a button,” said Uber chief executive Travis Kalanick. “L1’s knowledge of emerging markets will be crucial in helping us make cities more accessible, opening up more possibilities for riders and more opportunities for drivers.”

Uber has aggressively expanded around the world, especially in Asia, and is now operating in more than 60 countries around the world. In Latin America, Uber operates in 22 cities from Mexico to Argentina. The company started operations in Costa Rica in August 2015 and has announced plans to hire 300 people for a corporate services operation in San José.

The company’s expansion has chaffed against Costa Rica’s official taxis and left President Luis Guillermo Solís’ administration with an uncertain strategy to combat the app’s spread. Taxi drivers blocked traffic in front of the president’s office in Zapote, in southeastern San José, on Feb. 1 after the administration refused to block its download. On Wednesday a female taxi driver chained herself to a tree outside the president’s home in protest over Uber, unlicensed “pirate” taxis and regulations for red taxis.

The Solís government has maintained that the company’s service is illegal in Costa Rica but has yet to outline an enforcement strategy.

“This concerns us as the government because we don’t have the administrative tools to block Internet applications,” Alfaro said. The presidency minister said that while the executive branch could not block the application, a court order might be able to.

There was no mention during the three-hour meeting how the government would address non-Uber unlicensed transportation, Presidency Ministry spokeswoman Ilse Chango said.

Taxi drivers did not say if they planned to protest again over the application or perceived government inaction. Alfaro said the administration is open to continuing dialogue with the taxi unions.

Trending Now

Costa Rica’s Piangua Mollusk Threatened by Pineapple Farm Runoff

Costa Rica’s Térraba-Sierpe National Wetland, a 33,000-hectare haven of mangroves and rivers, is under siege from an unlikely source: pineapple farms. A study by...

Costa Rica Hunts for Nicaraguan Hit Squad After Exile’s Assassination

Costa Rica’s Judicial Investigation Agency (OIJ) is investigating whether a hit squad tied to Nicaragua’s Ortega-Murillo regime is targeting exiled critics on its soil....

Costa Rica to Launch Electric Air Taxis for Sustainable Travel in Guanacaste

Costa Rica is poised to revolutionize its transportation landscape with the introduction of electric air taxis, offering a sustainable alternative to traditional ground travel...

Hondurans March to Mark 2009 Coup as Election Battle Heats Up

Thousands of government supporters marched Saturday in the capital of Honduras to commemorate the anniversary of the 2009 coup that ousted then-leftist President Manuel...

Panama Regains Control of Bocas del Toro After Violent Protests

Panama’s government has regained control of Bocas del Toro province after months of violent anti-government protests sparked by pension reforms, officials announced. The unrest,...

An Expat’s Take: 5 Burning Questions About Life in Costa Rica Right Now

Have you been keeping up with the various events taking place in Costa Rica? There is always something interesting going down, and here are...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica