Rideshare Apps Taxed

Uber has become increasingly popular in many Latin American nations. “In just two years in Mexico City, the ride sharing giant has become an integral part of urban life, with around 50,000 drivers navigating the megacity.” Mexico City was the perfect place to implement Uber because it has low rise housing across an urban sprawl. Another reason why Uber has been so sucessfull in Mexico City is due to tradtional street taxis being assocaited with kidnappings. Since Uber provides many safety features for it’s users, it has been able to attract many consumers. Altouugh Uber is such a huge success, many tradtional taxi companies view it as threat to their businesses which is why in Mexico City imposes taxes on rideshare apps. Up to 1.5% of revenue for rideshare apps is taxed by the Mexican goverment. While demand is increasing for Uber, it is a threat to other businesses which is why the goverment taxes Uber.

http://money.cnn.com/2016/12/06/technology/uber-latin-america/index.html?iid=SF_LN

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