With China’s Didi Chuxing Technology Co, launching its operations in Mexico in April 2018, Uber is under pressure to consolidate and expand its footprint in the remaining 11 Mexican states where regulations are not exactly friendly to ride-hailing services.
In a move that marks Uber Technologies’ commitments to Mexico, the ride services firm disclosed it has invested $500 million in the Mexican economy since the launch of its services in the country in 2013.
The sunken cost includes “social responsibility” projects, contributions to government-run mobility funds and unspecified security spending.
Faced with regulatory battles across Europe, Asia, the United States and in Latin America, Uber Technologies is under pressure to step up its game with the arrival of China’s ride-hailing services firm Didi Chuxing Technology Co, which launched its operations in Toluca, Mexico in April 2018 and plans on rolling out its services to other cities as well.
Uber has stated it will remodel its Mexican support centers as well as provide an option to customers in Mexico to tip drivers through its mobile app.
Incidentally, Mexico is Uber’s fourth-biggest country going by number of rides, and is trailed by the United States, Brazil and India.
As per Federico Ranero, Uber’s general manager for Mexico, the ride services firm operates in 21 out of the country’s 32 states. The remaining 11 states have regulations that are unfavorable to ride-hailing firms, said Ranero.
Out of these 11 states, Uber is particularly interested in expanding its operations in Durango, Hidalgo, Tamaulipas and Veracruz.