Uber, Didi slam Mexico City's new rules on ride-hailing, including cash ban

By Julia Love and Noe Torres MEXICO CITY (Reuters) - Uber, Didi Chuxing and other ride-hailing firms on Thursday criticized a host of new regulations of the sector in Mexico's capital city, which include a ban on cash fares that could exclude many potential customers who lack bank accounts. Mexico City's government on Wednesday issued rules that prohibit cash payments for ride-hailing services, require drivers to register with the city, and ban the use of cheaper cars, among other measures

Reuters April 26, 2019 06:05:46 IST
Uber, Didi slam Mexico City's new rules on ride-hailing, including cash ban

Uber Didi slam Mexico Citys new rules on ridehailing including cash ban

By Julia Love and Noe Torres

MEXICO CITY (Reuters) - Uber, Didi Chuxing and other ride-hailing firms on Thursday criticized a host of new regulations of the sector in Mexico's capital city, which include a ban on cash fares that could exclude many potential customers who lack bank accounts.

Mexico City's government on Wednesday issued rules that prohibit cash payments for ride-hailing services, require drivers to register with the city, and ban the use of cheaper cars, among other measures.

The regulation marks a setback for San Francisco-based Uber in one of its largest markets ahead of a planned initial public offering. The company has fought hard for the right to accept cash fares in Mexico, arguing that it is a critical tool to reach the millions of Mexicans who do not use credit or debit cards.

In a joint statement, Uber, China's Didi, Spain's Cabify and Greece's Beat said Mexico City's government agreed in February to work with the sector as it updated regulation. But the new rules were issued "unilaterally and without prior dialogue," the firms said.

"We are concerned that, as it stands, this reform creates a series of barriers to entry," the companies said in a joint statement, which was also signed by Estonia's Bolt and Mexico's Laudrive. They also noted that drivers could see a hit to their earnings.

Mexico City's transport ministry did not immediately respond to a request for comment. Minister Andres Lajous told a news conference that the rules were aimed at rooting out corruption and levelling the playing field for ride-hailing firms and taxi drivers.

The regulation also prohibits pre-paid cards, which are frequently used by tech companies in Mexico to reach customers who do not have credit or debit cards.

Uber began accepting cash in Mexico City last year after Mexico's Supreme Court struck down a ban on cash fares in the western state of Colima.

Uber said in a separate statement on Wednesday that the Mexico City regulation contradicts the Supreme Court's decision, which it argues should be used as a precedent nationwide.

(Reporting by Julia Love and Noe Torres, Editing by Rosalba O'Brien)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Hong Kong marks handover anniversary as national security law takes effect
World

Hong Kong marks handover anniversary as national security law takes effect

HONG KONG (Reuters) - Hong Kong authorities threw a security blanket across the city early on Wednesday, the 23rd anniversary of the former British colony's handover to Chinese rule, hours after new national security legislation took effect in the financial hub. The contentious law will punish crimes of secession, subversion, terrorism and collusion with foreign forces with up to life in prison, heralding a more authoritarian era for China's freest city.

Kentucky Democrats pick ex-fighter pilot McGrath to challenge U.S. Senate leader McConnell
World

Kentucky Democrats pick ex-fighter pilot McGrath to challenge U.S. Senate leader McConnell

By Susan Cornwell (Reuters) - Former fighter pilot Amy McGrath said on Tuesday she was ready to take on Senate Republican Majority Leader Mitch McConnell after edging out a Black progressive to clinch the Democratic nomination for the seat.

World shares end stellar quarter but still down in 2020
Business

World shares end stellar quarter but still down in 2020

By Rodrigo Campos NEW YORK (Reuters) - A global stocks index rose on Tuesday and marked its largest quarterly gain since 2009 as investors continued to look for signs of an economic recovery while shrugging off data showing a rising number of COVID-19 cases. The possible return of Libyan oil production, which has been at a trickle since the start of the year, weighed on crude prices. World shares rose 18.7% this quarter, the biggest quarterly gain in 11 years, but are still down more than 7% so far this year due to a slump of 34% between Feb.