Mexico: Supreme Court to review rules on Uber and Cabify

Mexico’s Supreme Court of Justice (SCJN) has accepted a request by nine local deputies from the southern state of Yucatan to look into the constitutional legitimacy of a decree, issued on June 22nd, which modified the State’s transportation laws. The revised rules mainly concerned the regulation of transportation services hired through electronic devices, such as Uber and Cabify.

The case will mark the first time the country’s highest court has examined this sort of regulations which, in the case of Yucatan, include rules forcing the vehicles hired with these services to be valued at over 200,000 pesos (approx 12,000 USD); to be no more than seven years old, to hold a maximum of seven occupants, a minimum of four doors and air conditioning. Additionally, the vehicle may only be operated by its legal owner, and all payments must be made through bank cards.

The regulations, which opposers have called overly restrictive, also forces the company offering the service to be liable for operators’ actions should they lack insurance, among other requirements. Shortly before the decree was passed by the local chamber, Uber’s Mexico CEO, Francisco Sordo Mogollon, warned that these rules may lead the company to leave the state.

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