Uber Faces Scrutiny Over Post-Reform Fare Increase

Mexico’s Ministry of Labor and Social Welfare (STPS) and the Federal Consumer Protection Agency (PROFECO) are publicly criticizing Uber for increasing fares by up to 7% just 15 days after the launch of a government-led pilot program designed to expand social protections for gig economy workers. Authorities describe the move as unilateral, unjustified, and inconsistent with prior commitments made by platform companies during the development of the labor reform.

The reform, implemented in coordination with companies such as Uber, DiDi, Rappi, and Mercado Libre, aims to strengthen worker rights while preserving the flexibility of app-based work models. Participating platforms had explicitly agreed not to raise prices or reduce earnings during the initial rollout phase. “The reform does not modify the business model; it makes it fairer,” says Alejandro Salafranca, Head of the Dignified Work Unit, STPS.

STPS says that there is no substantive data to support fare increases and rejected Uber’s claim that the price adjustment reflects operational impacts from the reform. In response, STPS and PROFECO will conduct joint inspections to verify compliance with consumer protection laws.

Article 7 of the Federal Consumer Protection Law requires that companies notify users of any changes to pricing or service terms and obtain explicit consent, reports PROFECO. The agency urges Uber to formally inform customers of the fare adjustment and allow them to accept or decline the updated terms, noting that failure to do so could constitute a violation of consumer rights.

Uber has not yet responded publicly. However, STPS warns that linking price increases to regulatory reforms could jeopardize the collaborative nature of the initiative. A joint statement from STPS and the Tax Administration Service (SAT) reiterated that the reform introduces no new tax obligations for platform operators or workers.