Mexico City sets rules for Uber, Cabify

Uber’s Public Policy Director Corey Owens reportedly said last week that the ride levy was at the “high end” of what it pays in other cities.

Under the rules, 1.5 percent of each fare from ride-sharing cabs will go to a “Taxi, Mobility and Pedestrian Fund”.

The owners claim that ride-hailing services are not subject to the same DOT and DMV oversight like vehicle safety inspections and extensive driver background checks.

Nevertheless, the rules did not impose a limit to the number of vehicles Uber could deploy around the city, which Mexico City had threatened to do in its preliminary proposals.

Uber commended the regulations, saying that the minimum value was “a high bar” but “doable,” Reuters reported. The company also gained another break – the previous resolution to also include a minimum vehicle age of no more than five years has been dropped from the official regulation. A government spokesman said that cost could not be passed on to passengers or drivers but would be paid by the company.

The controversial ride-hailing service, which has been valued at over $40 billion, has come under increasing pressure from regulators in recent months in various parts of the world.

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”.

Taxi drivers in Mexico, who had previously held massive protests that caused citywide traffic snarls in May, criticized the regulations, saying that they were not tough enough and maintained Uber’s unfair competitive advantage over them.

Yellow Cab Co. and 18 others that operate in California metropolitan areas including San Franciso and Los Angeles sued Uber in March, claiming it misleads customers about its background checks for drivers and driver safety.