Uber Is Live In Ba

[gracielle]

Glasgojohn - I agree with your statement. There are many complex issues, some cultural, at play on this subject. I will attempt to give my opinion on the 3 very valid points which you site.

1. http://www.lanacion.com.ar/1889684-en-medio-de-su-disputa-con-las-autoridades-uber-sera-gratis-por-cinco-dias-en-buenos-aires
"Los trámites para constituir la empresa de forma local como sociedad anónima comenzaron en diciembre pasado, con el objetivo de dar asistencia a las acciones de marketing. Después de esta gestión, Uber planea solicitar el CUIT. "Después de finalizar los trámites, esta sociedad argentina va a facturar oportunamente todos los servicios que está prestando ahora sin dejar de pagar ningún impuesto que aplique en el país", dijo la compañía." I don't doubt that Uber will obtain a CUIT and pay applicable taxes. But in the meantime the company is getting a ton of free publicity.

The Uber drivers, as well, will be required to pay taxes as independent contractors. In SF Uber transfers the portion due to the driver to his bank account and produce a 1099 annually. Driver is responsible for obtaining a Tax ID #, make IRS quarterly contributions and annual tax filing. I assume that Uber will not pay drivers here "en negro".
Drivers will provide an AFIP ID# as independent contractors, etc, etc. to comply with ARG law. It's the job of Rentas Ciudad (AGIP) to audit drivers (taxi, Uber, etc) to ensure they are following local fiscal laws. Although said payment could be transferred via PayPal (or other similar service) which AGIP may not currently have capability to trace.

2 & 3. Require all Uber drivers to obtain a professional license as well. This will make it possible for them to insure their vehicles to carry x-number of passengers for commercial purposes. How about the CABA taxi union, which represents non-owner drivers, reduce their fees to assist those drivers to compete? In ARG nobody is willing to negotiate an inch of what they consider to be their "territory".

I would prefer the city to follow the guidelines for Uber that Mexico D.F. finally adopt ed in July 2015.
http://www.lanacion.com.ar/1810941-mexico-anuncio-la-primera-regulacion-de-america-latina-para-el-servicio-de-choferes-uber

The increase of ABL taxes will continue to happen no matter what! The 2016 fiscal valuation of my PH (from said amount the 1% ABL is calculated) has increased since 2007. But not accelerated in tandem with the annual inflation rate. Regardless, said figure, then and now, is MUCH lower than the "market value" in pesos of my duplex at it's lowest annual denominator per Reporte Inmobiliario for Caballito.

But the ABL cannot be increased arbitrarily......Ley Tarifa 1.040
http://chequeado.com/ultimas-noticias/aumento-del-abl-y-del-inmobiliario-urbano-justificaciones-y-comparaciones-de-macri/

• “Todos tenemos que ir convergiendo a pagar del orden del 1% del valor de nuestra propiedad, que es lo que se paga en todas parte del mundo como mínimo”. VERDADERO

For "the good of the consumer" is not the primary concern......i.e. whether the Uber driver has ins to cover passengers, etc. The battle in all fronts here is about the quick buck and it always has been. I have been observing this type of behavior in ARG for the last 30 years. With and without inflation rate, with and without recession, governed by Peronista or Radical gov'ts. Commerce at all levels jacks up their prices at the smallest hiccup to "cover" themselves.....and then some. Better to sell less at higher prices etc. etc. Result....consumption is down for basic food items....8% for 1st quarter of 2016 as compared to same period in 2015. Unemployment is up. Rents continue to increase along with bldg "expensas".

I am sure Uber did market research and concluded that CABA is now very ripe for this type of business. They have investors with deep pockets. They seem prepared to lose millions to compete with their formidable rival . Didi Kuaidi. It's the People’s Republic’s answer to Uber, a combined entity of Chinese ride-hailing services Didi Dachand and Kuaidi Dache. I wonder if the rickshaw drivers complained? Probably not. And I don't necessarily attribute this to pressure from their dictatorial regime. More likely it's because there is a market for everybody.

 

[TrevorCito]

You make some good points but fail to address three of the major issues

1/ Uber is not paying any taxes in Argentina at the moment / the taxi drivers are

2/ Are you insured whn you ride with Uber / taxi drivers are insured

3/ What is the standard of the Uber driver / all taxi drivers must have a professional licence.

Maybe the city should reduce taxes for taxi drivers...? Sounds OK but then they would increase other taxes like ABL...

Good points.

Uber is not the problem, rather, it is the answer to an industry that is burdened with costs and controls. Uber is just a mirror and the Taxi industry doesn't like what it sees. It's an old, ugly cash (tax evading) business burdened by compliance, red tape and costs. The industry should spent its time and resources breaking free of the costs and burdens placed on in by the government rather than attacking the mirror.

1. Uber is subject to international tax treaties and doesn't need to pay tax in Argentina because it doesn't have residency here. (tax is residency based according to argentine law). They sell an internet based service. It is great for AFIP because drivers cannot hide income and there is no cash. Argentina must respect international tax treaties so Uber isn't breaking any tax related laws here in Argentina.

2. Good question. in Australia, Uber covers insurance for incidents. It is fundamentally important that passengers are covered so Uber should make this clear. It's currently murky.

3. Why shouldn't customers have the right to choose? Why is a taxi driver somehow more qualified to drive a person? Are Uber drivers mindless robots and taxi drivers supreme driving machines who are somehow magically better equiped to drive a car? We need to get real about this. Who benefits from a 'professional license'?

 

[camel]

Uber is playing chess. Local taxi unions are playing checkers.

 

[TrevorCito]

estebandepraga:.
In dynamic,growing economies like the U.S. (where Camberiu lives) these modern technological changes in products and services are expected and even welcomed.Although they may obliterate some jobs the economy itself is able to absorb those left unemployed in other areas and accomodate itself to these changes.

Does Uber remove demand for transport services? The way I see it, taxis exist ONLY because there is demand for the transportation of people on an ad-hoc basis and this won't go away anytime soon. Uber is providing a cheaper, transparent and more efficient service that the consumer wants. Further, how will jobs be obliterated?

The taxi industry here is burdened by costs and they don't like competition. Competition is healthy for the economy and consumer whereas protectionism just induces corruption, higher costs and poor customer service.

 

[TrevorCito]

The taxi industry needs to stop the bellyaching and come out of the caves. Develop an app to compete with Uber and Cabify. Accept credit and debit payments. And foremost, cease scamming passengers by taking longer routes. Rotten apples spoil the barrel.

Agreed!! Further, they should attack the high government compliance costs rather than attack Uber. If they were providing a great economical service then competing services like Uber wouldn't face a chance.

 

[Noesdeayer]

TrevorCito :
it is percieved as putting people out of work, In present day unionized Argentina this is seen as anathema.It might have been better to wait until maybe the end of the year when ,hopefully,the economy gets a little more stabilized and the technologically oriented consumer base for Uber increases.This is still a cash and carry based inflationary economy.Maybe,however,a "trickle down" approach might work.Time will tell.

 

[gracielle]

Noesdeayer- I don't think there is ever a better time where unions are involved. I think present day unionized ARG is rarely part of the solution for their members and always part of the problem for the rest of society. Strike, strike, strike! The concept of verbal mediation, without a strike, appears to be missing from their vocabulary all year round.

Looking at it from a business vantage point Uber chose the right time. Winter weather increases customer base. Lower tariffs than the taxi companies at a time when the economy is at it's weakest cycle due to inflation. On the other hand, "end of the year" means warmer weather and close to holiday season. Would be riders may opt for public transp to save a buck. Jan is vacation time....schools are out, city tends to empty out. And if it doesn't work in BA, they will pull out as they did in Paris.

How Uber operates worldwide.....http://www.lanacion.com.ar/1889293-el-otro-lado-de-uber-la-estrategia-para-pagar-menos-impuestos-y-los-problemas-de-seguridad

 

[Noesdeayer]

gracielle.
As a business person myself, I fully understand and agree with your "business vantage point" of view..However,it might be better on the PR side to the local consumer to be a little less confrontational at the start up to maybe gain more colaboration and less flak from the unions who like them or not are a stark Argentine realtity ,The typical local taxi taker is generally not yet a credit card holder and is used to paying cash .
Uber as an excellent service I have used it often in Panama and I also feel confident as you that it wll take off well
but "down pedal the hard sell, it usually doen't go down well in Latin America".

 

[gracielle]

Noesdeayer - "[background=rgb(252, 252, 252)]The typical local taxi taker is generally not yet a credit card holder and is used to paying cash." Perhaps, but that will change in the near future. Macri's plan is to move further along the bancarization of the economy. Further than Vanoli ever did in July, 2015 when he increased the limit of funds deposited in the "Cuenta Universal Gratuita". Said savings account includes a Visa debit card which has the same function over the counter as a credit card but can only be used to pay for goods and services in ARG. [/background]

[background=rgb(252, 252, 252)]Since last year, most banks don't accept the payment of bills (electricity, gas, water, telephone, cell, cable, etc) in cash over the counter. Not even for their own customers. They tell you to register online for automatic deductions of payments using the CBU# connected to your checking or savings. The "cuenta universal gratuita" has the same auto payment capabilities with no cost to the holder. [/background]

[background=rgb(252, 252, 252)]Pago Facil and Pago Mis Cuentas will began to phase out their services. The only choice left for that customer who wants to continue making payments in cash is to go to [/background]each entity....Metrogras, AYSA, Edesur, etc in order to pay their bills in cash.

July, 2015.....http://www.cronista.com/finanzasmercados/Llevan-a--18.000-el-limite-de-la-cuenta-universal-gratuita-de-los-bancos-20150716-0045.html
[background=rgb(252, 250, 249)]"La medida forma parte del Plan Nacional de Bancarización Inclusiva que busca profundizar la inclusión financiera y avanzar con transformaciones para otorgar más derechos y beneficios a amplios sectores de la población, especialmente a los segmentos más vulnerables", explicó ayer el Banco Central en un comunicado.[/background]

 

[gracielle]

Per TN News, effective this am, BA gov't via a court order had Uber app disabled for ordering a ride. The newscaster showed on camera that when accessing the app to initiate an order, a notification appears stating "there are no cars available in any part of BA".
http://www.lanacion.com.ar/1890532-ordenan-bloquear-a-uber-en-la-argentina

On the other hand, Uber is back in business in Madrid as of March, 2016. Both sides negotiated terms as reported in article. They were restricted legally in 2014. Due to a court order, the Uber app was legally blocked. Uber quickly created a secondary app and notified the general public thru social networks. Gov't desisted and the original app was back online in 4 hours. Can't wait to see what Uber does next in BA.



http://elpais.com/elpais/2016/03/30/inenglish/1459323814_036208.html