Breaking the taxi monopoly: A proposal for Puerto Rico’s future
Puerto Rico’s transportation sector is a critical yet often overlooked piece of the island’s flourishing tourism industry. Despite record-breaking visitor numbers, ground transportation lags many competing destinations.
At the core of this challenge is a powerful taxi union monopoly, protected by government regulations that limit competition, stifle innovation and restrict the quality of service available to travelers.
When Uber first launched in Puerto Rico, taxi unions resisted. They leveraged regulatory protections to influence lawmakers to enact legislation that effectively banned ride-sharing platforms. This regulatory shield was less a defense of individual taxi workers and more an effort to preserve a monopolistic market resistant to technological and service innovation.
The impact of this monopoly is clear. Puerto Rico’s taxi industry has little incentive to innovate or improve. Visitors frequently report to encounter inconsistent pricing, poorly maintained vehicles and drivers sometimes lacking formal customer service training. These factors can detract from an island known for its world-class hospitality, hardworking people and warm culture.
It is important to clarify that this is not an attack on taxi drivers or unions, whose work is essential to the local economy. However, the facts demonstrate that protectionism, backed by regulation, has stifled progress and erected barriers to modern, guest-focused transportation solutions widely expected by visitors.
A glaring service gap is the near absence of well-regulated shuttle services operated or endorsed by hotels and hospitality properties as of 2025. Globally, shuttle transportation is a foundational amenity in most high-tourism destinations. Hotels and resorts often operate or partner with shuttle services to provide safe, reliable, pre-booked transport directly from airports and cruise ports to accommodations — a critical component of the guest experience that assures convenience, safety and peace of mind.
The Dominican Republic, a key competitor in the Caribbean, offers an instructive example. There, an extensive network of professional shuttle services — many controlled or coordinated by hotels — provides visitors with seamless, comfortable transfers that enhance overall satisfaction and reinforce destination competitiveness. Puerto Rico must evolve to meet or exceed these benchmarks.
Transportation is inseparable from hospitality — it shapes the visitor’s journey and defines the tone of their entire stay. Without reliable shuttle options, the overall experience often falls short, costing the industry repeat visits and positive recommendations, as well as potential future revenue.
To break this stagnation, Puerto Rico must reform regulations to enable hotels and resorts to incorporate shuttle services as part of their guest offerings. Opening the market to comply with the modern standards of today introduces competition based on service quality, operational professionalism and customer satisfaction — not government-protected monopolies.
Such reforms will yield many benefits. Guests would receive safer, more comfortable transportation. Hospitality businesses would gain control over a critical part of the guest experience. Local workers would find new job opportunities in a merit-based marketplace that rewards professionalism and innovation.
Opening shuttle markets does not threaten taxi drivers but revitalizes the entire transportation ecosystem. It incentivizes technology adoption, better driver training and vehicle maintenance standards, fostering a modern, guest-centered culture.
The economic and reputational gains from these reforms far exceed any perceived costs from dismantling current regulatory protections. Permitting hotels to operate or coordinate shuttle services aligns with modern global practices and ensures a more integrated, guest-friendly tourism system.
Puerto Rico’s taxi union monopoly offers a cautionary tale — protective regulation, despite good intentions, can inadvertently hamper broader industry progress and visitor satisfaction. It is time for thoughtful dismantling of these barriers and policies that will make it possible to support economic freedom, innovation, and hospitality excellence.
In practical terms, hotel-operated shuttle services are a ready-made solution. This reform, if enacted, will enhance Puerto Rico’s competitiveness, significantly improve visitor experiences, and empower workers and businesses alike, ensuring the island’s continued growth as a world-class destination.
Antonio Santos is a hospitality and tourism professional with more than 30 years of industry experience. In 2024, he ran for the Puerto Rico House of Representatives in San Juan’s District 1 as a candidate with Proyecto Dignidad. He advocates for entrepreneurship, small government principles and economic independence, combining practical experience with a focus on sustainable growth in Puerto Rico.
