After 14 years of conflict, Mexico’s taxi drivers and digital ride-hailing platforms have reached a breakthrough. Uber and the licensed taxi drivers’ union have signed an agreement allowing traditional taxi drivers to join the app while maintaining their operational independence. The partnership will enable users to request conventional taxis directly through Uber.
The agreement aims to expand transportation options, increase drivers’ income and meet growing urban demand, particularly ahead of major events such as the 2026 World Cup. It marks a turning point after more than a decade of tension following Uber’s entry into the Mexican market.
Uber executives say the move will give taxi drivers access to new customers, improve efficiency and help them compete with private ride services. Union leaders, who long resisted platform-based models, now acknowledge that adapting to app-driven demand is unavoidable.
Negotiations lasted more than two years as both sides worked to balance competing interests. Under the agreement, taxi drivers will retain their status as concession holders rather than becoming Uber employees, preserving their autonomy within the regulated system.
The new model allows users to choose between service types within a single app, with fares expected to remain in a similar range. The strategy is designed to improve coverage in high-demand cities and prepare for increased mobility needs during international events.
The deal comes amid tighter regulation of ride-hailing services. At Mexico City International Airport, authorities have stepped up enforcement against app-based drivers, issuing fines exceeding 8,000 pesos. The crackdown reflects ongoing institutional pressure in a sector where taxi unions have historically held significant political influence.
Earnings data highlight the industry’s challenges. Entry-level taxi drivers earn about 159,000 pesos ($8,700) annually, while experienced drivers make roughly 160,350 pesos ($8,800). Full-time Uber drivers report a wider range, with some earning between 150,000 and 200,000 pesos ($8,270 to $11,000) a year.
Now, after years of rivalry, the two sides are joining forces in a bid to reshape urban transportation in Mexico by combining traditional systems with digital technology.
