MEXICO CITY (Reuters) – The Mexican Supreme Cloister on Tuesday addled bottomward a ban on banknote fares for ride-hailing firms, ambience a key antecedent for Uber and added industry players gluttonous to adeptness millions of Mexicans after acclaim cards.
FILE PHOTO: Uber’s logo is displayed on a adaptable buzz in London, Britain, September 14, 2018. REUTERS/Hannah Mckay/File Photo
By a vote of 8-3, the cloister disqualified that a ban on banknote fares in the baby western accompaniment of Colima was unconstitutional. Uber does not currently accomplish in the state.
The ride-hailing close has fought for the adeptness to acquire banknote fares in Mexico, admitting apropos that the convenance risks authoritative drivers targets for robberies. But in a country area added than 60 percent of the citizenry lacks a coffer account, banknote fares are a business acute for Uber, analysts accept said.
As it prepares for a planned antecedent accessible alms aing year, it will be important for Uber to advance its advance in Mexico and added Latin American markets it dominates.
“We are adulatory this resolution,” said Sergio Romero, the company’s acknowledged administrator in Mexico. “Our operation, and all the bodies that now are chief to pay for their trips in cash, are now adequate by the Supreme Court.”
Rival ride-hailing account Cabify additionally acclaimed the decision, adage in a account that it would adjust admission for consumers after coffer accounts.
Uber operates in 43 cities in Mexico, accepting banknote everywhere but the basic and the axial accompaniment of Puebla, area bounded governments accept blocked that anatomy of payment.
Romero said Uber would not aphorism out the achievability of acknowledged challenges adjoin those bans afterward the Supreme Cloister accommodation but would seek to assignment with bounded governments first.
More than 50 percent of Uber’s trips in Mexico are paid for in cash, Romero said.
Uber argued that the Colima advancement law, anesthetized aftermost year, discriminated adjoin users who do not accept coffer accounts and overstepped the state’s bound as the use of banknote is absolute by the federal government.
Transportation is adapted by states in Mexico, and a complicated check of ride-hailing adjustment has emerged back Uber’s accession in 2013. For example, while banknote fares are banned in Mexico City, they are acceptable as anon as drivers cantankerous into the surrounding accompaniment of Mexico.
“I anticipate it is a footfall in the appropriate administration (for ride-hailing companies) to see a college cloister booty a angle and set the rules of the game,” said Edgardo Rivera, a above country administrator of Cabify who is now co-chief controlling of Bancompara, a accommodation allegory start-up.
The case afore the Supreme Cloister was brought by Colima assembly who objected to the regulation.
The Supreme Cloister begin aftermost year in a abstracted case that bans on banknote fares were unconstitutional, but fell abbreviate of the majority bare to set a precedent.
Ruling on addition aspect of the regulation, the Supreme Cloister alone a cap on the cardinal of ride-hailing drivers who can assignment at any accustomed moment, handing addition win to companies in the sector.
Reporting by Julia Love; Editing by Leslie Adler and Peter Cooney
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