STPS rejects Uber’s fare increase due to reforms

On Wednesday, the Ministry of Labor and Social Welfare (STPS) denounced Uber’s announcement of a unilateral fare increase in Mexico as unjustified and “irresponsible.” They stated it contradicts agreements made with the federal government, occurring just 15 days after the labor reform for digital platforms began.

Uber announced a price increase of up to 7%, linking it to expenses arising from the recent labor reform, “without any support whatsoever,” the agency stated.

This argument was rejected by the STPS, which reminded that the company had made an explicit commitment not to increase fares or impact the income of users and workers during the pilot phase of the new model.

“The business model of Uber and similar companies extracts wealth directly from workers, who assume all the costs of necessary tools and equipment,” the agency said in a statement.

The STPS warned that it will not tolerate business practices that unfairly shift costs to consumers or workers “under false premises.”