MEXICO CITY, July 15 (Reuters) – Mexico City became the first city in Latin America to regulate Uber on Wednesday, announcing rules that include a 1.5 percent ride levy, a yearly permit fee and a minimum vehicle value.
The community authorities said autos being used by Uber as well as other solutions which can include Cabify must expense at the very least 200,000 pesos (usd12,674). Each Uber vehicle will also need a 1,599 peso yearly permit that will be paid by the driver.
Mexico City has imposed rules and fees for ride-sharing companies Uber and Cabify, following an uproar from taxi drivers.
A few weeks ago, an Ontario Superior Court Judge ruled that municipalities can not treat Uber, the social media transport service as a taxi operation and therefore, they can not force Uber to comply with the taxi industry regulations. Before the regulation appears, the company said the value had “no sensible gain” onto the metropolitan area.
Uber said the 200,000 peso minimum value was “a high bar” but “doable”. She added that the company was relieved that a previous plan to enforce a minimum auto age of five years was scrapped.
Ruben Alcantara, leader of a large taxi association, said drivers would meet to decide how to respond on the ‘affront and trickery by the government.’.
“We didn’t expect the city’s government to react so violently towards us”, he said.
Before the regulations were unveiled, California-based Uber won the backing of several major government organizations including the Federal Economic Competition Commission and Mexico City’s Human Rights Commission. Uber says the metropolis is one of its fastest-growing markets globally with 500 000 customers and more than 10 000 drivers, some of whom share cars.
If it’s the City’s intention to defy the Court ruling, we’d better have a discussion about who’s going to pay for the inevitable legal costs when Uber sues the City for harassing them and don’t think that Uber’s lawyers won’t have that Superior Court decision in their back pocket when they go to Court.