Uber Enters Santa Cruz de Tenerife Market by Partnering With Local Taxi Drivers

Uber has entered the Santa Cruz de Tenerife market, marking a significant shift in the company’s expansion strategy across the Canary Islands, according to Diario de Avisos. The ride-hailing giant is currently reaching out to local taxi drivers to integrate their licenses into the "Uber Taxi" service. This move is a strategic attempt to bypass the regulatory hurdles that have long restricted the growth of private hire vehicles (VTCs) on the islands, which remain caught in ongoing legal disputes.

Local taxi associations, including La Gremial del Taxi and Taxi Sí Canarias, view Uber’s approach as a purely commercial play. Their president, Zebenzui Pérez, notes that by using existing taxi licenses, Uber avoids the need for specific government or city council permits. This allows the company to recruit drivers without the strict limitations usually placed on VTC fleets, which have been the subject of intense court battles in Tenerife.

The capital’s taxi sector now faces a difficult choice. While Uber offers a quick way to modernize, union leaders warn of a long-term risk: once the legal status of VTCs is settled, the company might prioritize its own private fleet over traditional taxis. Pérez suggests that this current partnership could be a stepping stone for Uber to eventually sideline the public taxi service in favor of its own model.

In response, the Santa Cruz de Tenerife City Council is developing its own mobile app to modernize how local taxi licenses are managed. The goal is to provide a competitive, home-grown alternative that doesn't rely on outside tech companies. Taxi associations are currently advising drivers to hold off on joining Uber and wait for the municipal app, which aims to give local taxis the same digital convenience as major platforms while keeping the sector independent.