Cabify Leaves Mexico After 12 Years, Citing Growth Struggles

Cabify has announced its exit from the Mexican market after 12 years of operation, with services officially ceasing on Oct. 11, 2024. This decision follows years of challenges and an inability to meet growth and profitability targets in Mexico. In a recent communication with users, the company explained that market conditions were unfavorable for continued success.

“The business model we aimed to implement has not worked as expected in the Mexican market, and future opportunities do not appear promising,” Cabify explained.

The company emphasized that its primary goal was to achieve sustained profitability and growth, but despite its efforts, these objectives remained unmet. 

Cabify entered the Mexican market in 2012 and faced regulatory challenges and public controversies, particularly regarding safety measures. In 2017, these issues led to bans in certain states, such as Puebla. To address reputational damage, Cabify underwent a rebranding, adopting a modern image. The company also tried to diversify its services, expanding into private air transportation and electric scooters, but with limited success.

Despite these challenges, Cabify maintained a loyal user base in some regions, and its exit will leave a gap for those accustomed to its services. However, the company made it clear that Mexico is no longer a viable option for its business model, stating, “We were unable to identify future opportunities in this market.”

While Cabify will cease operations in Mexico, it will continue to serve several other Latin American countries, including Chile, Colombia, Peru, Argentina, and Uruguay.

The announcement comes shortly after the Mexican government revealed plans to allow digital ride-hailing apps to operate in federal zones, including airports across the country.