May 01, 2024 410

Uber halts fintech plans in Mexico


American ride-hailing company Uber has chosen to temporarily halt its fintech strategies in Mexico

Uber has decided to temporarily pause its fintech initiatives in Mexico, despite previously acquiring the necessary license to offer financial products. The company has not disclosed the duration of this halt or provided further details on the reasons behind it. This decision comes after Uber's announcement in August 2023 when it obtained a fintech license as an electronic payment funds institution, enabling it to introduce a digital wallet with a debit card. Initially, Uber aimed to enhance its services in Mexico and contribute to the advancement of the overall fintech sector in the region.

While Uber is putting its fintech plans on hold, other companies operating in the same space, such as DiDi and inDrive, are actively expanding their presence in the financial landscape of Mexico. These companies are providing payment solutions, loans, and credit cards, thereby amplifying the capabilities of collaborative economy platforms in the realm of digital finance. DiDi and inDrive have been working on similar projects to Uber's, intending to broaden their ecosystems and venture into transportation, delivery, food marketplaces, and finance. While Uber postpones its plans, DiDi and inDrive are enhancing their approaches to explore the potential of alternative data and financial inclusion in Mexico.

In addition to Uber's developments, inDrive recently launched inDrive Money, offering cash loans to drivers operating on its platform in Mexico. This initiative aims to provide loans to drivers who often face difficulties accessing financial services from traditional institutions. Meanwhile, DiDi has expanded its loan offerings to all Mexicans through its independent DiDi Finanzas app and introduced the DiDi Card credit card issued by Regigold, a regulated financial institution in Mexico. These advancements underscore the opportunities presented by the gig economy and alternative data, as well as the potential for financial inclusion as transportation and delivery platforms integrate into the financial and fintech ecosystem.