Cabify, a Spanish transportation app, operated in two cities in Ecuador: Quito and Guayaquil.
The Spanish transport platform Cabify ceased to operate in Ecuador permanently as of March 15, 2023, according to a statement sent by the company to its clients.
The company closes its service in the country after six years of operation.
The company argues that its business model in the Ecuadorian market has not reacted at the same level of growth and profitability compared to the rest of Latin America.
“In other countries in the region, Cabify’s business continues to consolidate” and there are relevant sustainable growth data, “above 2019 levels or even the milestones recorded by the company to date,” the company reported ago. few days.
The transport platform added at that time that it has informed all drivers, passengers and companies that use its service in Ecuador about the decision.
Another company that stopped operating in the country a few months ago was OLX Autos.
“The decision responds to the long-term objectives that the brand has in its expansion mission within Latin America. With this, it seeks to concentrate efforts on markets with high potential,” said OLX.
The departure of the two companies occurs amid the deterioration of the country’s business climate, due to political instability and lack of confidence in the government’s economic plan, according to the Brazilian center for economic studies of the Getulio Vargas Foundation (FGV).
Update: This note published on February 15, 2023, at 12:13 p.m., was updated on March 15, 2023, at 11:00 a.m., with the company’s information on the definitive end of its operation in Ecuador.