Mexico City – first city to set a limit on Uber services

Car services help in easy and hassle free transportation. However, some of the places are thinking on banning or limiting the use of such services. One such city is Mexico City. It can be, perhaps, the first city to set a limit on number of Uber cars running across the city. According to the recent draft regulation, they also said that chances are they can completely wipe away this service in all the metropolitan cities. Reuters usually aims on having cars with minimum cost of Rs 10 lakh on Uber and similar companies. This is a huge concern which comes as a pressure from the regulators.

Uber is a San Francisco-based company which claims to be the cheapest and sought after services in many parts of the country. This service is used by more than 90 percent of the drives while the set up cost for most of the drivers who make use of this service amounts to MXN 150,000.

Ban can lead to a huge loss in terms of time and money

Banning or reducing the frequency of Uber services can give an end to the Uber X. This will certainly shoot up the prices for Mexican drivers and will also decrease its availability. This will indirectly affect the daily Uber commuters. This is certainly not a positive response to the action.

The Mexico government is working on this regulation and is yet to confirm the details of the plan. They are still negotiating on the details of the draft and it is expected that within a week they will come up with a conclusion. However, the draft doesn’t mention the exact count of the cars. It is said that a regulation by Mexico City can be the first one for Uber brand in Latin America. Services might have to shell out extra bucks as they are thinking of imposing taxes according to the proposed regulation. Prior to this, such ban and restrictions have never been imposed in any city.

A normal driver by profession, Ruben Alcantara, said that he will ask a whooping MXN 400,000 from the government as one Uber car’s cost when he meets them to discuss the regulation on coming Monday. Uber has earned good revenue of $40 billion. It first came in the city of Mexico in 2013 and since then, it is one of services continuously scaling heights of success. It owns about 500,000 customers and has hired more than 10,000 drivers to function smoothly. One of its competitors was of the statement that applying a ban would hardly matter because many of the drivers work for services other than Uber for part time jobs. As per the planned regulation, the drivers might have to have a permit to work normally.

Thus, many reforms have been taken place by the government to come up with the ban or some changes in the ongoing Uber services. Although, this is in interest of the public, it can hamper the transportation in Mexico City to a huge extent.

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