In a bid to fend of the intense competition from Uber, some yellow cab drivers in metropolitan Guadalajara are charging a maximum fare of 50 pesos for rides anywhere inside the city beltway (periferico).
The 50-peso cabs can be recognized by the painted fare on the windscreens.
According to Jesús Salazar Álvarez, leader of the Unión de Taxistas Económicos de Jalisco, around ten taxi drivers a day are “joining the movement.”
By law, drivers participating in the program are still obliged to use their meters but will not charge passengers more than 50 pesos per ride, regardless of the fare indicated by the meter.
Uber announced recently that it would be starting a pilot program to accept cash. Currently, the company only takes payment for rides with a debit or credit card. The service has grown rapidly in the city and is favored by more than 85 percent of young people, research indicates.
Salazar Álvarez said he hoped the new 50-peso fare would provide stiff competition for Uber.
Salazar said his organization is currently developing a digital app so that “traditional” yellow cab drivers can compete with Uber on a level playing field.