Costa Rica’s licensed taxi fleet has fallen to roughly half its original size, according to taxi industry representatives, who say about 6,800 drivers remain registered with the Public Transportation Council (CTP) out of the 13,500 concessions created under the law that regulates paid passenger transport.
The representatives attribute the decline to several factors, chief among them the growth of ride-hailing apps such as Uber and DiDi, which have operated here for more than a decade without a specific legal framework. The erosion began slowly and then picked up speed. CTP concession records previously showed that an average of 17 taxi plates a year were returned to the agency between 2000 and 2015.
That figure rose to 241 a year between 2015 and 2018, and to 343 a year between 2018 and 2020. Uber first started in Costa Rica on Aug. 21, 2015, offering app-based rides with upfront fares and driver details, and quickly became a common choice for residents and visitors alike. The company has since expanded to all seven provinces and reports more than 28,000 driver-partners and roughly 1 million users nationwide.
That growth has added to a long-running dispute. Licensed taxi operators must hold a state concession, pass technical vehicle inspections, carry insurance, stay current with social security payments, pay annual fees and charge fares set by the Public Services Regulatory Authority (ARESEP). Taxi groups argue that platform drivers face no equivalent framework, leaving the two sectors competing on unequal terms.
Industry representatives warn that if the trend continues, Costa Rica could see a steady loss of regulated taxi service, particularly in communities where ride-hailing apps have limited coverage. They maintain that a regulated industry remains essential to oversight of vehicles, drivers and passenger safety.
The line between the two sectors has started to blur. Uber opened registration for red taxi drivers in July and launched Uber Taxi on Sept. 29 with more than 300 drivers signed up, allowing users to book a licensed red cab through the app. Participating drivers must hold a professional C1 license, a current vehicle inspection, insurance and a CTP driver code, and early fare comparisons show red taxis booked on Uber can cost considerably more than UberX.
Both have called for regulatory clarity, though they disagree sharply on what it should look like. Attention is now focused on the proposed Law on Non-Collective Paid Passenger Transport and Digital Platforms, which the government first presented in May 2023. In July, the Legislative Assembly’s Government and Administration Committee finished reviewing 282 substantive motions on the bill, approved nine of them and sent the updated text back to the Legislative Plenary for debate and an eventual first-round vote.
Before that vote, lawmakers can still file motions asking the plenary to reconsider amendments the committee rejected. The bill would define app-based transport as a service of general economic interest, governed by free-market rules but regulated by the state. It would also create a dual taxi category, allowing licensed cabs to operate conventionally or through platforms, and would require dual taxis and platform vehicles to meet similar standards on inspections, insurance, taxes and social security.
One provision would directly affect air travelers. Under the text approved in committee, platform drivers would be barred from taking passengers to or picking them up at Juan SantamarÃa International Airport, preserving the exclusive access held by the orange airport taxis.
Taxi organizations, including the National Chamber of Transport (CANATRANS) and the National Federation of Taxi Cooperatives, have publicly backed the bill, saying it would level the playing field after more than a decade without rules for the platforms. Platform drivers have pushed back.
The app drivers’ association Aprimotec has warned that the bill could put the livelihoods of about 35,000 households at risk, and platform drivers marched to Casa Presidencial on July 29 to request dialogue with the government, citing concerns that include restrictions on stopping at taxi stands, bus stops and airport terminals.
The bill remains on the plenary agenda awaiting debate. Whether it is approved, amended further or shelved will shape how people get around Costa Rica without a car for years to come, and whether the country’s shrinking red taxi fleet stabilizes or keeps contracting.
