Sheinbaum Slams Uber for Raising Prices Over Labor Reform

Mexico City — President Claudia Sheinbaum expressed disagreement on Friday with Uber's decision to transfer the costs of incorporating its drivers and delivery personnel into the Mexican Social Security Institute (IMSS) to end users.

Sheinbaum's Stance on Uber's Pricing

During her daily press conference, La Mañanera del Pueblo, Sheinbaum stated, "Uber has impressive profits; there is no reason to pass these costs—related to the app reform—onto the final consumer. Giving a small portion to the worker does not justify transferring the burden. They should recognize that these individuals require social security and that they, as employers, must contribute."

She emphasized that over 400,000 workers have already been enrolled in IMSS and highlighted ongoing dialogue with the company. She also noted that other platforms, such as Didi, are participating in the reform. "We are the first country in the world where delivery workers linked to digital platforms have access to social security," Sheinbaum affirmed.

Uber's Response and Government Concerns

Uber recently announced a fare increase of up to 7% in Mexico, citing adjustments necessitated by labor reforms that require digital platforms to recognize an employment relationship with drivers. The company clarified that the hike would vary by service type and city, aiming to "protect driver earnings and ensure service viability."

However, Mexico’s Secretariat of Labor and Social Welfare (STPS) raised concerns about the timing of the increase, coming just 15 days after the pilot program for the reform began. The agency noted that there is still no precise estimate of the operational cost impact on companies or the exact number of workers formally registered with IMSS.

The debate continues as the government and ride-hailing platforms navigate the implementation of the landmark labor reform.