Traditional taxi industry competition with digital platforms

The traditional taxi industry continues to face significant pressure from the rise of digital ride-hailing platforms and changing consumer preferences.

In Mexico’s Central Region, the taxi sector has seen a 25% decline in activity, which union representative Javier Hernández del Ángel attributes to reduced passenger mobility and lower consumer spending. In the Veracruz-Boca del Río area, tensions between traditional drivers and app-based drivers have prompted efforts to encourage dialogue, including a scheduled football match between members of the Unión Veracruzana de Conductores de Aplicación (Uveca) and traditional taxi drivers. Reports from Veracruz indicate a more severe impact, with some leaders estimating a 90 to 95 percent drop in traditional taxi usage.

In Oaxaca, Mexico, regulatory friction has emerged as a local council member demanded that authorities allow Uber to operate, arguing that citizens deserve more mobility options. However, the state mobility agency (Semovi) maintains that the platform lacks the necessary concessions required by law to provide public transport services.

Regulatory discussions regarding the coexistence of traditional taxis and digital services have intensified in Lanzarote, Spain. Following Supreme Court rulings, local leaders and stakeholders are debating the “inevitable arrival” of VTC (driver-operated vehicle) services. In Lanzarote, the sector is now calling on the Cabildo to expedite studies to determine the number of VTC vehicles permitted to operate, noting that the industry supports approximately 1,200 jobs. Meanwhile, in Donostia, hundreds of taxi professionals have mobilized to demand stricter controls on VTC platforms, citing regulatory violations and provocations.

In Argentina, Uber has announced its upcoming launch in Tres Arroyos, offering promotional incentives for the first 30 registered drivers to support the rollout of services using private cars, taxis, or motorcycles.