With operations in more than 450 cities, Uber has arrived in Myanmar, which is the 76th country where the app operates. The app operates in six other ASEAN countries, including Malaysia, Vietnam, Thailand, Indonesia, Singapore and the Philippines.

Taxi services in Myanmar have further worsened in recent years despite the regional government’s efforts to improve the system.

During his visits in Europe and the UK, Yangon Region Chief Minister U Phyo Min Thein had learned about Uber and heard from drivers and passengers who used the app. 

“When I was in England, I saw the people using Uber to commute. My visit to Europe has a purpose, which is to understand how we can upgrade our bus system, implement the water transport scheme and reform the taxis systematically,” the chief minister said. 

In many places, attempts to tap into the sharing economy are generally resented by taxi establishments.

Cities with well-established licensed taxi systems such as London and New York have seen protests against Uber’s entry into the local market. The firm has also faced opposition from regulatory authorities in a variety of countries, often because Uber involves drivers providing private transport services without a specific licence. Police in Hong Kong even raided Uber’s local offices and arrested Uber drivers in 2015.

But, according to the chief minister, there is value in bringing Uber on board because it will bring benefits to commuters if they can travel with good services and low costs. 

“I realised that we can change our taxi system with technology.

“Another advantage is that the lack of an established taxi association in Yangon means we can take this as an opportunity. I hope that we can improve the trust between drivers and passengers,” he added.

With the introduction of the Yangon Bus Service (YBS) in January, the regional government turned its attention to the city’s taxis, and aimed to have a system of licensed cabs to run side-by-side with Uber drivers. The chief minister noted that the lack of an established taxi association in Yangon would make Uber’s ride hailing service particularly suitable.

“In some countries there has been controversy between taxi associations and Uber, but in Yangon there is no taxi association and it is a good stage at which to start an Uber system easily,” he explained in January.

U Phyo Min Thein invited Uber to come to Myanmar in order to create a solution not only for reliable commuting but also for better services. 

“Uber is based in America; it is an innovation led by young people. We will also allow other taxi services to operate, with approval of the Yangon Region government or the Yangon Region Transport Authority. International companies are ready to come to Myanmar,” he said. 

In the last two weeks, Uber started their trial period in Yangon and offered promotions to passengers. 

“Our service started today. As far as I know, there are 70,000 taxis in Yangon and I hope that hundreds of drivers will cooperate with us.

“Yangon is a big city and many people rely on taxis, so Yangon is a crucial market to us. Many drivers and passengers are using mobile phones and we think that they can use our application easily,” said Sam Bool, expansion general manager for Southeast Asia at Uber. 

In other countries, Uber uses both taxis and private vehicles. But since Yangon has so many taxis, the app will currently only rely on them.

“We hope not to use anymore vehicles beyond the current numbers.

“If we use private cars, we need to discuss it with the Yangon regional government. We want to create the right sharing system, as we have already had good experiences in other countries,” said Mr Bool.  

Uber did not provide details on their investments or investment plans in Myanmar. 

“We look forward to supporting Yangon’s economic development by creating economic opportunities for its people, and allowing people to connect with the things they love the most. I want to thank the government for the warm welcome it has extended to Uber, innovation and new economic opportunities,” said Mike Brown, regional general manager of Asia Pacific at Uber.

When a passenger uses the app, he will receive information such as the driver’s contact information and license plate number. Passengers can track the car’s location and share location details with their contacts and family. This is seen as a step to improve commuter safety.

Anyone can download the free app on digital distribution platforms, namely App Store and Google Play, and sign up using their phone number and email address.

“Now passengers can use the app in English. Later we will produce a Myanmar language version. Passengers can pay the taxi fare with cash or credit card at the end of the ride,” Mr Bool explained. 

“Regarding taxi fare, we created a structure which can show the exact amount for the trip which the passenger intends to travel and passengers can easily see the price. The fare will be suitable, similar to the current level of taxi fare,” he added. 

The Japan International Cooperation Agency (JICA) noted in its report that 20 per cent of over two million commuters in Yangon use taxis while the rest travel with public transport.

But passengers often find the way taxis charge their fees very inconvenient. Drivers bargain with would-be passengers on the charge.

During evenings and night times, commuters also do not find it safe to take taxis. Some drivers share the same anxiety as well. In the past, there have been incidents where passengers were robbed or sexually assaulted by drivers and vice versa. 

The maintenance of many taxi vehicles is far from satisfactory and locals and foreigners alike often complain about the lack of professionalism among taxi drivers, from their attitude towards customers to the failure to navigate properly or even read Google map.

Local taxi service firms, Hello Cab and Oway Ride, have been in operation for over a year.

Malaysia-based Grab has also entered the Yangon market.

Cheryl Goh, group vice president of marketing at Grab, told The Nation in April that the firm aims to make it easier for commuters to choose to book a taxi and for taxi drivers to drive around looking for passengers, and reduce traffic jam by providing a more efficient taxi booking platform.

“We will allow all taxi service groups to join our market.

“We will not favour or oppress any groups. I hope that Uber can create a safe and reliable service for passengers and for tourists visiting our country,” U Phyo Min Thein said.

With the sharing economy expanding in Myanmar, many hope that the mass of live statistics can help authorities improve decisions to tackle traffic and enhance road safety in the future.