Taxi operators warn Uber could ‘cripple’ industry

Taxi operators are calling for an urgent meeting with Prime Minister Mia Amor Mottley to discuss the Government’s decision to grant international ride-hailing giant Uber a licence to operate in Barbados. They warn that the move could “cripple” the local taxi industry, jeopardise hundreds of livelihoods, and drain much-needed revenue from the economy.

Uber’s launch, expected next week, would make it the second ride-hailing company to operate in Barbados following PickUp Barbados, which entered the market five years ago. However, operators say Uber’s model — using privately owned vehicles rather than licensed taxis — poses a direct threat to their survival and undermines decades of regulation, investment, and contribution to the state.

Several frustrated taxi drivers gathered outside the Bridgetown Port on Friday morning, where they spoke to Barbados TODAY about their concerns and appealed directly to the Prime Minister to intervene before it was too late.

Veteran taxi operator Colvin Yarde, who has been in the business for more than 30 years, did not mince words.

“I am very particularly concerned about Uber coming to Barbados. I believe that the government has acted recklessly and irresponsibly in giving the licence for Uber to operate here in Barbados.”

Yarde said the island’s existing network of taxi operators already makes a substantial contribution to the national economy.

“There are approximately 4 500 taxis operating on the island. The government receives direct revenue from the Barbados Revenue Authority and indirect revenue from insurance companies, gas pumps, and people who bring in parts and vehicles for taxi operators. That’s a lot of money going back into the system.”

He argued that the introduction of Uber could dismantle this entire ecosystem.

“If Uber comes to Barbados and uses privately owned vehicles, that will cripple the taxi fraternity. Many taxis will go out of business, and the government will not be receiving that direct revenue from the taxi fraternity or the indirect revenue from all the associated services.”

Yarde warned that the ripple effects would extend far beyond the transport sector.

“When those businesses start to lose revenue, they will have to downsize, and then the National Insurance Scheme will not be receiving the amount of funds it needs to sustain the country. So you will have a chain reaction — workers laid off, less taxes being paid, less money in circulation. That is why I said the government acted recklessly.”

He stressed that Uber’s profits would not benefit the local economy.

“Of course, the government may receive a degree of revenue from Uber, but can that equate with the 4 500 taxis that have been operating and supporting so many livelihoods? Uber is an international company, so their profits will skyrocket, but the money will be leaving the island. The government will get their little piece, but those profits will not remain in Barbados.”

Yarde also questioned the fairness of introducing a multinational platform without consulting those who would be most affected.

“My question, and this is directly to our Honourable Prime Minister, Madam Prime Minister, do you really care? If you really care, you would show the country by having a dialogue with us, the taxi operators, so that we can sit down and deal with this conundrum that is coming to our industry.”

He added that while PickUp Barbados was marketed as a local innovation, it has already created new pressures on traditional taxi services.

“PickUp Barbados is already affecting us because it’s operating in the same market. While it was presented as a local initiative, we need to understand that every new platform entering this space reduces the share of work for traditional taxis.”

“So when we hear Uber is also coming, we get even more worried. This is our livelihood. All we are asking is for the government to have dialogue with us — sit down and work out a fair system that protects local taxi operators.”

Another long-time operator, Kenneth Knight, a member of the Bridgetown Port Taxi Co-operative, said Uber’s business model was simply incompatible with the scale of Barbados’ transport market.

“Barbados is too small for Uber. Uber works in big countries like Canada and England — you know, the big markets — but Barbados is just two by two. We can’t handle it.”

He warned that drivers who have invested heavily in licensing and vehicle maintenance would be undercut by private car owners joining Uber.

“It’s going to put a dent in my business, a big, big dent, because Uber brings in private cars to do their work so a man like me that has to get a permit will be out of work. A man that has an eight to four job could come on evenings and cut me out or he will [break from] his job and run Uber jobs till a certain time; and he will drive at a cheaper rate as me due to the registration fees taxis pay.”

Knight added that local taxi associations are now exploring ways to innovate on their own terms.

“Yes, we want to get all those local pick-up apps homegrown. We are forming our own app through the Barbados Taxi Association. We don’t need a big foreign company — we’re going to work with our own.”

“It’s important to build our own system here in Barbados — our own ecosystem. We don’t need anybody else’s system. We just need our system.”

Both men said they are not opposed to technology or modernisation but are demanding a fair and regulated framework that ensures local taxi drivers are not pushed aside by multinational firms. (SZB)