Mexico City is the first city in the Latin American region to issue regulations handling Uber Technologies, the well-known ride hailing service provider.
The rules, recently announced, include such features as a 1.5 percent ride tax, an annual permit and a minimum value of the vehicle used for transport. The city government announced vehicles used by Uber and other competitor services would need to have a value of more than 200,000 pesos ($12,674). This is around 50,000 pesos below a draft of the regulation and more than the US-based company was rooting for. Additionally, every Uber vehicle will have to gain an annual permit worth 1,599 peso, to be paid by the driver. The regulation does not limit the number of vehicles Uber can use in and around the city, as it was the case in earlier proposals. Uber said before the regulations was announced the price limit had “no logical benefit” but it was “doable” even though it set a rather “high bar.”
According to a spokesperson, the absolute minimum start-up cost for drivers to use the very popular ride hailing service was of about 150,000 pesos including the vehicle, but the vast majority of the cars in service have a value of more than 200,000 pesos with installed features. The company also gained another break – the previous resolution to also include a minimum car age of no more than five years has been dropped from the official regulation. The government added the 1.5 percent ride levy was a cost that should be paid by the company and not be passed to either the passengers or the drivers.