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Last Thursday, Uber said on that it would begin accepting cash fares in Mexico Cit y, seizing on a recent Supreme Court decision, although the local government has yet to approve the payment method.
Uber
waged a long campaign for cash fares in Mexico , where roughly 60% of the population lacks a bank account.
Mexico
’s top court sided with the company two weeks ago, finding that a state ban on cash fares for ride-hailing firms was unconstitutional , setting a national precedent.
Although a cash ban in Mexico City is still in place, Uber decided to begin accepting the fares, acting in accordance with the Supreme Court ’s decision, said Federico Ranero , the company’s chief executive in Mexico.
“Because of the importance of this precedent, and because of our mission, we’re deciding to (accept cash) now, and we’re collaborating closely with authorities to make sure that all of those regulations will be adapted,” he said in an interview.
Uber
has not decided if it will legally challenge Mexico City ’s ban, Ranero said.
Before the Supreme Court decision, Uber accepted cash in all but two of the 43 Mexican cities where it operates.
Still, when Uber was first negotiating with Mexico City regulators, it did not want to bill in cash, preferring to stick to credit cards, said Carlos Camacho , president of consulting firm Strategic Affairs Group , who advised Uber at the time.
Uber
sells pre-paid gift cards to accommodate users without credit cards and is working on other payment methods to reach the unbanked, Ranero said.
Accepting cash in Mexico City will extend the service to about 10 million people in the metropolitan area, Uber estimates. The company has said that over half of its trips in Mexico are paid for in cash.
The use of cash has sparked concerns that Uber drivers could become targets for robbery . In addition to its normal safety precautions, Uber verifies the identities of users who want to pay in cash by checking their Facebook profiles, Ranero said.
The company has not seen an increase in security incidents in Mexican cities where it accepts cash , he added.
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