Guadalajara is frequently touted as “Mexico’s Silicon Valley,” and politicians are constantly boasting of the “Digital Creative City,” the still unfinished tech-hub located in the city center. Yet the state government has struggled with how to react to ride-sharing app Uber, finding itself caught between its technological pretensions and a powerful taxi lobby.
The issue poses major questions about government’s role in society, because Uber is a problem for taxis solely because of its popularity. And what exactly is the government supposed to do? Protect the livelihoods of a certain sector? Or protect the interests of citizens seeking a better service?
Angry taxi drivers have organized demonstrations against so-called “pirate taxis” in Guadalajara, using their cars to block streets and further hold up traffic.
The situation in Mexico City is even more tense. The Washington Post reported that taxi drivers have threatened or attacked Uber vehicles and drivers. In response to a taxi strike in late May, the company offered users two trips free of charge. An Uber official said that downloads for the app increased by 800 percent that day.
The protests have done little to endear taxi unions to the general public.
“Taxi drivers getting annoyed at Uber is like Blockbuster protesting about Netlfix. Everything digitalizes and advances. Adjust or die,” Rodolfo Dillanes tweeted.
“Healthy competition ensures that services are better and less expensive for everyone,” said Mike Hernandez.
Uber launched in 2011 in San Francisco, California and quickly spread to more than 250 cities in 55 countries. The app’s rapid surge led to a rash of legal injunctions and protests by established cab drivers in cities in the United States and other countries. Several major cities have banned Uber, including Brussels, Belgium and Delhi, India.
The criticism of taxi drivers is that Uber does not pay for a licence as they are forced to do. The Jalisco state government recognizes that the app exploits a legal loophole and is defined before the law as a “technology platform” that connects people rather than as a transport service. In essence, the app allows users to contact the correct person to take them from A to B, and the user is charged a commission for making use of the platform.
Such legal definitions allow drivers to charge significantly less than taxis, as they operate without becoming embroiled in expensive state bureaucracy.
Aside from better pricing, Uber offers numerous other advantages. Many users say the vehicles are cleaner and better maintained. The app also provides a feedback system, so people can rate their drivers. Reportedly, those who have not enjoyed the service have received personal responses from management and even been awarded credit for future rides. What’s more, forgetful passengers who leave something in the car are far more likely to see it again. The app allows users to register an item as lost and arrange for the driver to return it.
In contrast, most customers argue that regular yellow taxis offer a substandard service. Overcharging and refusing to use the meter are common problems, as are drivers who are clueless about how to arrive at the destination. Clients need to “luck out” in order to wave down a cab in the area, or contact a taxi firm by phone and wait for an extended period for the vehicle to arrive.
What’s more, cabs can actually be very difficult to pay for. Passengers need cash on hand and drivers often don’t have the correct change. Producing a wallet and fumbling for cash can put people at risk.
For women, safety concerns are particularly acute, and they almost never sit in the front seat of the vehicle.
“I have heard stories of various people being attacked in taxis,” said Alejandra Alcalde. “I sit in the back because it feels safer. I think that if something were to happen I would have a slightly better chance to defend myself from the back seat.”
Uber has recently faced a backlash in countries where it has an established presence. Applying price hikes during peak hours, and its alleged practice of sabotaging competitors like Lyft by mass ordering and cancelling rides, have damaged the company’s reputation.
Yet Mexicans are turning to the app en masse because of its better costs and service. In Jalisco, the government has failed to provide a truly coherent response to the Uber issue.
The state’s best attempt was to cut a deal with the Taxi Commission, where both sides agreed to create a smartphone app so taxi drivers can offer their services in a similar way to Uber.
Development of the app will be managed by the Secretariat of Innovation, Science and Technology, who will also be responsible for training drivers and operators in its use. The app may help taxi drivers drum up business, although competition for pricing will no doubt remain a challenge. Ultimately, faced with technology’s relentless march, a lukewarm response from the government is unlikely to save the industry.
How to join Uber
1. Download the app for free using google play or another app store.
2. You will need to register by entering your name, email and a password.
3. Proceed to payment and enter your credit card details. A verification message will be sent to your smart phone.
How to use Uber
1. Tap the screen to set your pickup location.
2. Request your ride and a driver will accept. You can request the low-cost UberX service, the pricier UberBLACK (the vehicle will be a luxury sedan) or UberSUV (the vehicle will be a 6-seater SUV).
3. Enter the address or name of your destination. You’ll be sent the route and estimated travel costs.
4. Meet the taxi in your pickup location. You will be asked if you want to connect your own musical device. You won’t need cash for your trip and it is not necessary to tip.
5. After the journey, you will receive an email receipt. A 20-minute trip will cost around 90 pesos.
6. You can rate your driver out of five stars and your driver can rate you.