Introduction
Starting June 23, 2025, a new labor reform for digital application workers will take effect. This regulation aims to govern the relationships between companies like Uber, Didi, and Rappi, which provide food delivery and transportation services.
Background on the Reform
The labor reform, which was passed after 30 rounds of discussions between the parties, seeks to benefit over 650,000 workers by ensuring job flexibility while providing them with social security.
According to Marath Baruch Bolaños López, the Secretary of Labor, 272,000 workers from these platforms earn income equal to or exceeding the monthly minimum wage. This suggests that this number represents individuals who rely on this single source of income as their primary job.
Key Changes Brought by the Reform
The reform introduces several changes in favor of app-based workers, including:
- Access to social security
- Severance packages
- Participation in company profits
- Employer responsibilities
- Termination causes, among others
All contracts between companies like Uber, Didi, and Rappi must now be registered with the federal conciliation center.
Uber’s Stance on the Reform
Uber, one of the most recognized brands in this sector, has emphasized the importance of continued dialogue with authorities regarding the labor reform for app-based delivery and transportation workers.
Uber has warned that the current implementation of the reform could leave one in three drivers without opportunities and result in an estimated loss of 12 billion pesos in their earnings.
Uber hopes that through dialogue, a viable and successful implementation will be achieved, ultimately benefiting all users of their technology in Mexico.
The Rise and Impact of Digital Applications
Digital applications have been a success story in Mexico and many other countries since their introduction in 2012. Uber started in 2013, Rappi arrived in 2015, Uber Eats began in 2016, and Didi joined the scene in 2019.
These platforms experienced significant growth during the pandemic in 2020, with food delivery platforms doubling their figures between 2019 and 2022. They became a lifeline for thousands of restaurants and food stalls, primarily benefiting Micro and Small Enterprises.
By the end of 2024, the home delivery food market in Mexico generated $2.53 billion in revenue, according to Statista Market Insights.
Directly and indirectly, digital delivery and transportation apps have supported employment in Mexico. They offer an opportunity for individuals with vehicles and time to earn income by delivering food or transporting passengers. Additionally, they have provided logistical support to thousands of businesses that survived and continue operating through home delivery services.
These services originated with a simple perspective: to create a technological link between demand (for transportation or food delivery) and individuals offering their vehicles and time for a profit.
These arrangements are not formal work relationships; rather, they represent an alternative or additional income source for many people.
While governments now aim to regulate these agreements, it’s crucial not to confine them within traditional employment frameworks.
