Ride-sharing platforms in developing countries: effects and implications in Mexico City
Eisenmeier, S RJ. Ride-sharing platforms in developing countries: effects and implications in Mexico City. Pathways for Prosperity Commission. Background Paper Series; no. 3. Oxford. United Kingdom
This paper explores the impact of Uber and similar ride sharing platforms on the drivers in Mexico City. It highlights the impact of ride sharing platforms on flexibility and independence of Uber drivers, their access to social security, their income and income security, and the safety conditions under which these drivers work. The paper argues that transportation network companies (TNCs) have a different impact on the social contract in developing countries than they do in developed countries. The paper shows that Uber’s effects are both positive and negative. While some of the drivers are able to take advantage of the low barriers to entry the transportation industry where they can enjoy increased flexibility and attractive income opportunities, these drivers also lack social security, and their income is very volatile.
Furthermore, counter to the assertion that ridesharing reduces pollution and congestion, the paper shows that car ownership has increased under Uber. The paper concludes that as platforms like Uber continue to gain prominence, there will be necessary conversations about the responsibility of these platforms to their stakeholders (drivers, riders and the wider public).