Córdoba will attempt to impose a kind of restriction on transportation apps

The Córdoba ruling party moved forward with a project that restricts the operation of digital transportation platforms. The initiative sets limits on the number of authorized cars, establishes strict conditions, and sets a mandatory minimum fare. The regulation will be discussed in the chamber after the winter recess, with support from Hacemos Unidos por Córdoba.

According to what was approved in committee, there will only be one license for every 375 permanent residents. With that formula, Córdoba will authorize up to 3,998 vehicles to operate, even though today the ratio of taxis and remises is more favorable. Instead of expanding options for users, the Municipality decided to protect the traditional system.

"We must address the transportation situation," said ruling party councilor Marcos Vázquez. However, the ordinance doesn't address the needs of users or independent drivers. The regulation puts a brake on the growth of platforms that operate with technology and efficiency, imposing obstacles to the entry of new providers.

A restrictive model that discourages innovation

The project incorporates requirements that limit access to the system, affecting both drivers and technology companies. Among the new requirements are mandatory insurance, registration in municipal records, and technical requirements that exclude many vehicles. Cars must have air conditioning, a 1,000 cc engine, and be no more than ten years old.

In addition, drivers must have a category D1 license, no criminal or sexual record, and personal insurance. The entire process will be digital, but that doesn't compensate for the imposed restrictions. Trips may only be made if requested through the app and for a maximum of 12 hours per day per driver.

Authorization will be limited to those who can prove legal residence in Córdoba and are registered with Rentas and the municipality. In practice, workers who currently generate income through these platforms without depending on the state system are excluded. The ordinance also prohibits operating outside the authorized digital framework.

Controlled fares and benefits for traditional actors

Instead of allowing the market to set the price of trips according to supply and demand, the project imposes a minimum fare. The value may not be lower than the urban transportation ticket (currently $1580), and only a dynamic scheme within certain margins will be allowed. Competition is thus conditioned by state control of base prices.

When a taxi or remise uses the app, the taximeter must be turned off and the digital fare applied;  if the trip is taken on the street, the traditional fare will be used. This mixed system benefits taxi drivers, who will have a guaranteed minimum and fare flexibility depending on the case. For platforms, however, an unprecedented limit is set.

The ruling party introduced a clause that allows remises to be added as part of the digital system. However, this inclusion has no cap, which may favor already established actors. Penalties for non-compliance are severe: from fines to permanent disqualification of companies.

Political consensus for a restrictive and absurd regulation

Vázquez stated that there was dialogue with all blocs and that the text was modified at the request of Mayor Daniel Passerini. However, the regulation keeps its restrictive essence and continues to benefit the traditional system. From the opposition, some blocs questioned the quota and the authorization mechanism.

Uber currently operates with a provisional judicial authorization, and DiDi also provides services in the city. With this regulation, the ruling party seeks to shield the regulated system before competition grows. The stated objective is to establish clear rules, but the result is regulation that discourages innovation.

If approved, Córdoba will join other cities with similar regulations, although none with such a low quota in relation to its population. Vázquez acknowledged that the regulation could be reviewed in the future, but defended its approval. "We know it's not definitive, but it's a necessary step," he declared.