Michoacan Approves Mobility Law, Apps Will Pay 1.5% Fee

The Government of Michoacan introduced its newest Mobility and Road Safety Law, which regulates on-demand transportation services through mobile networks or apps, which will have to contribute 1.5% of each trip made.

Governor Alfredo Ramírez and Gladyz Butanda, Head, Ministry of Urban Development and Mobility (SEDUM), explained that the money from the fees will go into a fund for the development of mobility and transportation. Butanda pointed out that this fund will address public transportation violations, contributions from natural gas companies, traffic impact studies and Cooperative Action Systems, according to a press release by the Michoacan Government. 

Butanda explained that the on-demand transportation service operated without any legal framework regulation and that it was necessary to implement one to follow the national criteria, which ensures fair competition between public and private transportation. The law involves the authorization of companies through a single registry and the certification of vehicles. Service providers will have to display a special sticker and post regular vehicle updates. 

Through this measure, the government seeks to ensure that all transportation providers adhere to certain standards, ensuring passenger safety and efficient mobility. The 1.5% contribution is expected to be a significant source of funding for the development of the transportation sector in Michoacan. The funding will help address infrastructure improvements, training programs for drivers and the implementation of innovative technologies to enhance the overall transportation experience in the state.

Ramírez recently announced that his government would launch a cable car system in Uruapan, a project that is like Mexico City's Cablebus, which currently features two lines. Ramírez said that the state government will incorporate the new mobility solution for Michoacan and could be ready in 2023, and it was included in the state's public works program. Uruapan's public transport network consists of 42 bus routes that connect more than 30 neighborhoods, as reported by MBN.

In January, Michoacan unveiled a new industrial and logistics park, Eleva Park, with a strong investment from the private sector to improve connectivity and attract investments to the state as well to foster growth, as reported by MBN.