Uber is Learning to Play by Legal Rules in Myanmar

Uber has been under fire in US and other countries for more or less breaking the law and employing shady tactics to run their businesses. With their expansion into Myanmar, it looks like they are learning to play by the legal rules this time round.

According to a Reuters report, Uber said they’ll only hire government-accredited taxi drivers in Myanmar. This move is currently unique to Myanmar, and Uber is facing strong competition with rival Grab – which already have a strong presence in the country and other parts of South East Asia.

Grab launched their Myanmar operations in March, opting to work with taxis and slowly scaling up – looks like Uber is following suit.

It’s not just Grab that Uber has to worry about. Prior to Grab entering the picture, Myanmar already has at least two ride-hailing start-ups – Hello Cabs and Oway Ride.

Sam Bool, Uber’s expansion general manager for South East Asia said “Having the government support from day one is pretty powerful. Drivers know we are fully compliant with existing regulations. That does grease the wheels.”

Many people in Myanmar still do not have credit cards, so Uber drivers in Myanmar would accept cash or local bank transfers. In many other markets, Uber users pay via a credit card linked to the app.

Bool declined to say how much Uber was investing or what it hoped to make in Myanmar, but said the company could help the government upgrade Yangon’s 70,000 taxis, many of which are not equipped with seat belts or do not have air conditioning.

Uber’s expansion into Myanmar coincides with a push by the authorities work to revamp public transport, starting with the bus network in Yangon.

Uber was working with the Yangon government to integrate its services to the bus network, Bool said, with plans to provide services to commuters in areas where public transport is not well-developed.

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