Argentina becomes the fastest growing market for uber in the world the company’s staff says, enables the country to increase the sudden economic implementation, which promotes unemployment and crush Argentina’s purchasing power.
The economic crisis has certainly helped to find uber as a substitute alternative to many people in Argentina. Uber only operates in Buenos Aires where more than Twenty percent people become jobless due to the economic crisis and they joined uber instantly.
Despite the concern about the country’s economy, in which the central bank followed the rate of money to avoid the currency crisis, then the 4.2 percent increase in the second quarter, the company says There is no fear that a fist can increase the number of driving and less Demand.
But the Uber Argentina Unit is still facing a drawback: For most riders, the company does not charge the driver, in which 25% commission is ideally stable. Due to legal and regulatory barriers, freight ride in Argentina can be paid only with a cash or credit card issued abroad, which is almost no local person have. When fare is paid in cash, then drivers do not have any way to pay 25 percent of its commission, so debt is increasing on the company. The commission is the only source of income for uber.
However, drivers say that the current Argentine’s growth rate may be temporary, the commission is linked to the lack of charge. Uber says in the past three months, it includes 55,000 active drivers and 1 million active users in Buenos Aires.
Especially economists say, Uber’s recruitment success reflects a broad trend within Argentina, where an rising unemployment affects full-time jobs.
Uber working in Argentina since October 2016, when faced a hard time from government officials and taxi drivers, including legal disputes, which still exist in the shape of restrictions on credit card payments.