Uber stops fintech plans in Mexico

Uber decided to freeze its fintech plans in Mexico, with the company not disclosing the duration of this move, nor providing further information on the reasons behind it. The news follows Uber’s announcement from August 2023, when the company received a fintech licence as an electronic payment funds institution, which enabled it to introduce its digital wallet with a debit card. At that time, the ride-hailing firm was set to improve its services in the region, while also advancing the overall fintech sector.

However, other companies operating in the same area, including DiDi and inDrive, are currently increasing their input in the financial landscape, providing payments, loans, and credit cards, and amplifying the capabilities of collaborative economy platforms on digital finance. Both DiDi and inDrive worked on similar projects to Uber’s, with the companies aiming to expand their ecosystems and enter the transportation, delivery, food marketplace, and finance. The strategies of these companies differ from one to another, with Uber currently postponing its plans, while the other two enhancing their approaches to discover the potential of alternative data and financial inclusion in Mexico.

In addition to Uber’s plans in Mexico, inDrive recently launched inDrive Money, which offers cash loans to drivers operating on its platform in Mexico. The solution is set to allow drivers who are often marginalised by traditional financial institutions to access loans from the company’s lending partners. Through this move, inDrive intended to enhance its time-to-market, while also generating additional benefits for the platform. Also, DiDi expanded its loan offerings to all Mexicans via its independent DiDi Finanzas app, as well as launched the DiDi Card credit card issued by Regigold, a regulated financial institution in Mexico.

As underlined through the above-mentioned advancements, the gig economy provides several opportunities, as well as the capabilities of alternative data, and prospects for financial inclusion in the region as transportation and delivery platforms enter the financial and fintech ecosystem.

To advance its development strategy and enter additional markets, Uber recently partnered with several companies. Prior to the current news, Uber announced in March 2024 its alliance with Mastercard and Payfare, with the company aiming to launch the Uber Pro Card in Canada. As part of their collaboration, Uber was set to introduce the Uber Pro Card, which provides free instant payouts after every delivery trip and improved loyalty capabilities for drivers and delivery individuals on the platform in the region. The features were intended to be enabled by Payfare’s digital banking app and platform.

Furthermore, at the end of December 2023, Uber for Business, the company’s enterprise arm, partnered with Brex and Ramp to modernise expense management. The integrations were set to automate receipt matching for Uber rides and meals, supporting companies to simplify expense management and save time on and off the road.