Uber and DiDi Face Escalating Mexico Labor Reform Disputes

Rideshare drivers and delivery workers in Mexico are alleging that mobility giants Uber and DiDi are failing to comply with labor regulations established under the December 2024 reform to the Federal Labor Law (LFT), while regulatory challenges for Uber escalate globally following a major privacy fine in Europe.

According to a report compiled by platform workers covering the period between January and June 2026, Uber systematically underreported worker earnings to the Mexican Social Security Institute (IMSS) by 19% to 25%. Workers allege the company calculated contributions based solely on active trip time, omitting driver incentives and service application fees from the salary calculation.

The workers report that this underreporting scheme reduces Uber's tax burden and results in annual savings for the company of approximately MX$1 billion (US$58.83 million). The practice impacts approximately 77,000 Uber drivers registered with full social security in Mexico, creating a ripple effect affecting more than 250,000 people when including their families.

According to IMSS figures cited by the workers, only 237,627 platform workers currently have full social security coverage in Mexico, despite 1.66 million individuals being designated as beneficiaries under the labor reform. Workers note that the underreporting limits their contributions to Infonavit housing funds, Afore retirement accounts, childcare access, and family protection, while directly violating LFT regulations and early labor commitments made during President Claudia Sheinbaum's administration.

In response to inquiries, Uber stated that integrating digital platform workers into social security is a complex, unprecedented regulatory initiative that it has supported since its inception.

"This regulation is new and technically complex. Since its entry into force, and as greater clarity has been generated regarding the criteria for its application, Uber has updated its processes and continues working to ensure its correct implementation. We are committed to complying with the applicable regulatory framework and continuing to work constructively with the government and drivers to address the challenges arising from the implementation of an unprecedented regime in Mexico and the world," Uber said in an official statement.

Labor tensions culminated in physical demonstrations in Jalisco, where driver groups organized by the Jalisco Drivers Council and the "Somos Todos" movement protested outside company offices.

César Castillo, representative of the Jalisco Drivers Council, stated that the platforms have failed to properly recognize workers' rights, including social security, vacation pay, vacation bonuses, annual bonuses (aguinaldo), and profit-sharing (PTU).

"As workers, we have come to denounce several situations that Uber and DiDi are blatantly violating, such as labor recognition, social security, and the breakdown of benefits," Castillo said.

Castillo noted that platforms avoided profit-sharing payments by registering separate, recently created corporate entities. "They did this dishonestly because they registered another company, and the law states that a recently created company is not required to distribute profits; however, the income of these companies does not match the income of the other, nor have they made this transparent," he said.

Drivers also raised concerns over unviable compensation, presenting instances where services paid roughly MX$3 (US$0.18) per km, as well as a specific trip yielding a payout of just MX$0.51 (US$0.034)—rates they state fail to cover fuel, maintenance, insurance, vehicle depreciation, and taxes.

Additional demands raised during the protests include:

• Formal breakdown of per-trip earnings to explicitly itemize vacation pay, vacation bonuses, and annual bonuses.
• Absorption of state taxes by the platforms rather than passing them on to drivers.
• Ceasing automatic account disconnections driven by algorithms without human review or clear dispute procedures.
• Halting the operation of motorcycle services like Uber Moto and DiDi Moto until they conform to state transport rules.
• Implementation of a mandatory passenger registry to enhance driver safety and prevent platform vehicles from being utilized in illicit activities.
• Facilitating negotiations toward a collective bargaining agreement.

Protesting groups announced plans to escalate their demands to state authorities, federal bodies, and the Senate of the Republic, while raising allegations of potential tax evasion regarding platform capital transfers to the Netherlands and China.

Data Protection Fine Issued in the Netherlands

In a separate legal development, the Dutch Data Protection Authority (AP) announced a fine against Uber amounting to €824.99 million (US$958.4 million) for violating European data protection regulations. The penalty marks the second-largest fine ever issued under the General Data Protection Regulation (GDPR).

The AP determined that between 2018 and 2022, Uber utilized automated software to monitor driver behavior and customer ratings. When the software flagged suspected fraud or low ratings, driver accounts were automatically deactivated without human intervention or adequate notice to the workers.

"Uber committed serious infractions. Drivers were suspended without consideration, suddenly leaving them without income through Uber. That is prohibited. A computer cannot independently make decisions with major consequences for a person. A human being should have intervened beforehand," said Monique Verdier, President, AP.

The investigation originated from complaints filed by 171 French drivers through the Human Rights League (LDH). The case fell under the jurisdiction of the Dutch AP due to Uber's European headquarters being located in Amsterdam under the GDPR's one-stop-shop mechanism.

The fine was calculated at roughly 4% of Uber's annual global revenue, which reached approximately €44.5 billion (US$51.70 billion) in 2025. Uber has announced its intention to appeal the decision. This action represents the fourth penalty imposed on Uber by the Dutch regulator, following fines of €600,000 (US$697,023) in 2018, €10 million (US$11.62 million) in 2023, and €290 million (US$336.91 million) in 2024.