The Impact of Uber in Mexico
Uber’s Journey in Mexico
Uber connects people and places across Mexico at the touch of a button. The platform is driven by the mission to reimagine the way the world moves for the better. It helps people go almost anywhere and get anything, while empowering drivers and delivery partners to offer their services when, where, and for as long as they like. Today, Mexico is among the top 5 most important markets for the platform worldwide.
For this report, Uber commissioned Public First to help gain an in-depth insight into the impact of Uber for consumers, driving and delivery partners, merchants, as well as for local communities. As the platform celebrates its 10th anniversary in the country, this is an important moment to reflect on Uber’s own journey and the benefits it brings to its users and to the country.
2013
The Uber platform launches in Mexico City.
2016
Uber Eats first launches in Mexico City, Guadalajara & Monterrey.
2017-2019
Uber and Uber Eats expand their operation to several cities, such as Tijuana, Querétaro, Hermosillo, Mexicali, Ciudad Juárez and Guanajuato
2019
In collaboration with the SHCP and the SAT, Uber simplifies the tax payment process for driver and delivery partners.
About Public First
Public First is an independent consultancy that works to help companies and organizations develop new policy proposals, better understand public opinion, and model their economic and social impact. Public First is a member of the Market Research Society.
About this report
In this report, Uber commissioned Public First to better understand and quantify the impact they were making for riders and eaters, drivers and delivery people, merchants and communities in Mexico. All values are given in MX$.
We used a mixture of methods to explore Uber’s impact:
- Public First ran an in-depth nationally-representative consumer poll of 1,005 adults in Mexico to explore their travel and food ordering habits.
- Quadrant Strategies ran an in-depth national survey of small and medium businesses in Mexico to explore the impact of Uber Eats.
- Quadrant Strategies ran an in-depth national survey of 1,000 Rideshare and Delivery Drivers in Mexico.
- Public First then created new quantitative models of the economic impact, time saved, consumer surplus and driver value created by Uber.
Executive Summary
Economy
Uber’s technology helps Mexicans have alternatives to order a ride to go practically anywhere and get pretty much anything, in a safer and more efficient way. The platform also offers flexible earning opportunities to hundreds of thousands of drivers and delivery people and gives merchants new ways to reach their customers.
This includes both the impact of the earnings of drivers, delivery partners and merchants on the Uber platform, as well as the wider indirect and induced multiplier effect created through the economic impact supported by them.
Consumers
The on-demand economy has helped make everyday life easier for people in Mexico. Uber invests in technology to promote users’ access to quick and safer mobility options, while Uber Eats gives options to order quality food right to Eaters’ doors – helping to free up valuable time for other activities.
of riders say that convenience is an important reason they use Uber
of Uber Eats users agreed that food delivery apps are a lot more convenient than other forms of takeout
Taken together, we estimate that Uber and Uber Eats produced MX$468.41 billion in consumer surplus in 2022, that’s equivalent to 1.6% GDP
In 2022, Uber produced MX$363.86 billion in consumer surplus for riders in Mexico.
In 2022, Uber Eats produced MX$104.55 billion in consumer surplus for users in Mexico.
Drivers and Delivery Partners
Uber offers drivers and delivery partners the ability to drive and deliver when it suits them best. They can combine the use of the app with other commitments and activities, and can generate additional income in a time when the economy is difficult for many people in Mexico.
of drivers reported that Uber helps them deal with inflation
reported that the rising costs of goods and services had a big or some impact on why they chose to start using the platform
reported that the ability to get paid quickly is also a reason why they chose to sign up as a rideshare or delivery partner on the Uber platform over other earning options
Communities
Uber plays a key role in supporting small businesses across Mexico by helping people come together to explore new hotspots, new restaurants or new entertainment. This remains especially important in the wake of the pandemic as businesses continue to rebuild.
of Uber Eats users have ordered from a restaurant they have never dined at before via delivery app
Over 60% of active merchants and restaurants on the Uber Eats platform are SMEs
of SMEs report that using Uber Eats has increased their revenue since joining the platform
In total, we estimate that in 2022 Uber supported MX$5.6 billion in additional value for the night time economy.
In total, we estimate that in 2022 Uber created MX$5.83 billion in additional value for the Mexican tourist industry.
Safety
Whether it’s getting home late at night, exploring a new part of town or traveling alone – Uber’s technology offers people in Mexico the peace of mind and the comfort of knowing that they have a safer route of travel to and from their destination. This is a characteristic of Uber of particular importance to female riders.
of users reporting feeling safe or very safe on their last Uber journey
of riders say safety is one of the most important reasons they choose to use Uber
of riders agree that Uber helps reduce drunk driving in their area
of riders told us they had used Uber after drinking alcohol, instead of driving a car, potentially avoiding accidents due to driving under the influence
Consumers
Uber creates economic value in a number of ways. By making mobility shared, flexible, reliable, and more convenient, the app unlocks new ways of getting around. It complements public transport, enabling individuals to enhance their commute, spend time with friends and family more often and enjoy a wider range of entertainment and hospitality.
Uber has become increasingly enmeshed into the daily lives of people in Mexico since its launch. Whether it is getting home from work, picking up children, or enjoying a night out with friends, consumers are able to rely on Uber to meet their needs across the board.
How do riders use Uber?
Uber is there when riders need it most. When we asked people in Mexico how they used Uber:
of riders used Uber in the last year to get somewhere on time
of riders said Uber is often the best option when traveling with a group
of riders used Uber in the last year to get somewhere in an emergency
When we asked people of Mexico how they use Uber:
of riders used Uber in the last year when visiting a restaurant or bar
of riders used Uber in the last year when they were going shopping
of riders used Uber in the last year to travel to watch a football match
of riders used Uber in the last year to connect with public transport
We also found that Uber often supports essential journeys for work and childcare. When we asked people of Mexico how they used Uber:
of riders used Uber in the last year when commuting to or from work
of riders used Uber in the last year when picking up children
of riders used Uber at least once in the last year for friends and family who struggle with mobility
of riders used Uber in the last year to get to an airport
Why do riders choose Uber?
We found that safety was one of the most important reasons why riders choose to use Uber (91%), closely followed by comfort (88%) and then privacy (84%).
Which factors tend to be important or unimportant in why you choose to use Uber?
The convenience offered by Uber was also key. We estimate that Uber saves riders more than 63 million hours per year.
We wanted to dig a little deeper into why riders use Uber, so we asked riders to tell us in their own words. When we asked, the most commonly used words were: safety, comfort and fast.
How do riders continue their journeys?
Uber extends the convenience and utility of public transportation, helping riders get to exactly where they need to be. In particular, Uber + Transit is specifically designed to support users to plan their daily trips through a combination of different mobility modes, which could include a trip on UberX, walking and/or public transportation.
Our polling found that 63% of riders used Uber at least once in the last year to get somewhere where public transport does not reach.
By addressing these last-mile challenges, Uber supports the public transit network, aiding riders reach their final destination. Uber operates in the hours where public transit is unavailable, and offers convenience when public transport doesn’t align with a riders’ needs.
Similarly, Uber meets riders where they are. Our polling found that the equivalent of 8 million people in Mexico had used the app to complete a journey they had begun on foot. More than one in ten (13%) of these respondents said they chose to walk a part of their journey to increase their exercise. Allowing riders to walk a certain distance to their destination before calling an Uber gives them freedom and flexibility when traveling and ensures that they are not bound to rigid timetables.
Why do people travel with Uber?5
How do consumers use Uber Eats?
Mexico has a thriving hospitality sector, representing 2.5% of GDP – and food delivery platforms help people in Mexico access local food regardless of their busy schedules. Indeed, almost half (44%) reported using Uber Eats to order food or essential items in the last year.
Food delivery service users in Mexico listed convenience (47%) and to save time (46%) as the most important reason why they opted to use Uber Eats. Users also highlighted that they used Uber Eats when they were tired of cooking or doing the dishes (26%) and liked the quick delivery times (32%).
Our polling found that:
of food delivery app users in Mexico have used a food delivery app to order groceries
of food delivery app users in Mexico have used a food delivery app to deliver pharmaceutical products
How much value does Uber create for consumers?
We wanted to quantify how much riders value the increased convenience, safety and reliability enabled by Uber.
One of the most important measures of economic welfare is the “consumer surplus”. This is a standard measure of the consumer welfare created by a product, service or organization. It is the difference between the price the consumer is willing to pay for a service, and the price they actually pay for a service.
The price you pay for something is likely to be at least equal to the minimum value it creates for you – or you would not have chosen to buy it – but there is no reason the value it creates can not be significantly more than this. By totalling the surplus consumer value, we produce a measure called the consumer surplus.
We asked riders how much they would have to be compensated to lose access to the Uber app for the next month.
In total, in 2022 we estimate that rides with Uber are producing over MX$363 billion in consumer surplus for riders in Mexico, the equivalent of 1.26% of Mexican GDP.
In total, in 2022 we estimate that deliveries with Uber Eats are producing over MX$104 billion in consumer surplus for consumers in Mexico, the equivalent of 0.36% of Mexican GDP.
Drivers and Delivery Partners
Uber offers drivers and delivery partners the ability to drive when it suits them. They can fit driving around other activities and commitments they have in their lives, and have the ability to readily earn additional income in a time when finances are tight for many people in Mexico.
Why is flexibility important?
Drawing from Quadrant Strategy’s 2022 National Survey of Rideshare and Delivery Drivers in Mexico, we found out just how important flexibility is:
of drivers and delivery partners state that flexibility is a big reason why they chose rideshare or delivery
of drivers and delivery partners choose to use Uber or Uber Eats because of the ability to be paid quickly
of drivers and delivery partners choose the self-employment opportunity with the Uber platform because of the ability to be their own boss
When asked, drivers overwhelmingly preferred a flexible schedule they can control (93%) over a fixed schedule they can plan around (7%).
Schedule flexibility then allows drivers and delivery partners who use Uber to combine app-based activity with other responsibilities – and, when asked what they do for a living, besides driving or delivering, 63% reported having at least one other responsibility.
Besides driving or delivering, which of the following best describes what you do for a living?
Why is additional income useful?
Rideshare and delivery platforms like Uber provide an opportunity to help drivers and delivery partners deal with the rising costs of goods and services across the Mexican economy.
reported that Uber helps them deal with inflation/rising cost of goods and services
reported that the rising costs of goods and services had a big or some impact on why they chose to start using the platform
Apps like Uber can help support people facing challenging financial situations, offering a low barrier to entry to generate earnings:
of respondents also felt that rideshare earnings offer easier access to earnings than a traditional job would (10%)
reported that the ability to get paid quickly is a big reason why they chose to sign up as a rideshare or food delivery driver over other earning options
Why is independence important?
Linked to this is strong support for the independence that is offered to ride share drivers and delivery partners by platforms like Uber.
When surveyed, almost two thirds (61%) of drivers and delivery partners highlighted that the ability to to be their own boss is a big reason why they chose to sign up as a rideshare or delivery partner on the Uber platform over other earning options.
When asked if they would prefer to be an independent service provider or an employee, 83% of drivers and delivery partners reported wanting to remain independent service providers instead of an employees.
Support for the economic independence and flexibility offered by these roles was such that 51% of drivers and delivery riders would stop driving if they were to be reclassified as employees, meaning they would report to a boss, work set hours and for just one platform.
Communities and local businesses
With the help of Uber, more and more people in Mexico are able to come together to try new hotspots, new cuisine or new entertainment. With many businesses feeling the combined effects of the pandemic and increased supplier costs, they are reliant on consumers being able to reach them. Uber has continued to help riders travel with confidence, key to supporting businesses to rebuild, enabling job creation and supporting economic growth.
How does Uber support local economies?
We found that food delivery platforms like Uber boost the ability of restaurants and merchants to serve a greater number of customers without having to expand their physical footprints. In total, we estimate that in 2022 Uber Eats created MX$4.24 billion in additional value for restaurant and merchant-partners in Mexico.
of people in Mexico agree that food delivery apps make it easier to discover new restaurants
of people in Mexico have ordered from a restaurant they have never dined at before via delivery app
of people in Mexico agree that food delivery apps have increased overall the amount they order from restaurants
Moreover, by providing consumers with safe, convenient travel options, we estimate that in 2022 Uber supported MX$5.6 billion in additional value for the night-time economy.
of Uber riders in Mexico told us that Uber was the only way to get home late at night
of Uber riders in Mexico agreed that having options like Uber available made them more confident in staying out late
of Uber riders in Mexico had used Uber in the last year to go clubbing, to a bar or other nighttime social gathering
When asked how their plans would change if Uber wasn’t available:
of ride sharing service users in Mexico told us they would make fewer trips to restaurants and bars
of ride sharing service users in Mexico said they would see fewer films, shows, or sports matches
Uber provides further support to local businesses by providing tourists with an additional means of transportation that is reliable, cost effective, by which they are also able to enjoy local restaurants, bars and entertainment. In 2022, an estimated 2 million foreign users ordered a ride with Uber, creating MX$5.8 billion in additional value for the Mexican tourism industry.
How does Uber support small and medium businesses?
Uber Eats is an integral partner for small and medium businesses that are seeking to grow – helping them boost customer reach, sales, and revenue. This is particularly important in a challenging trading environment characterised by inflation and economic uncertainty.
According to a survey of a representative sample of the 50,000+ Uber Eats merchants.
report that using Uber Eats has increased their revenue since joining the platform
feel that Uber Eats is crucial to their business success
feel that Uber Eats has a positive impact on their business’ ability to handle current economic challenges
In a highly competitive environment, Uber Eats helps new customers to connect with small and medium businesses.
More than 60% of active partners on Uber Eats are small or medium sized businesses
report Uber Eats has helped them reach new customers they otherwise wouldn’t have been able to reach
agree Uber Eats provides added convenience for customers
Uber also offers the critical infrastructure that enables under-resourced small and medium businesses to offer online delivery options.
feel that Uber Eats helps them utilize new technologies to support their business
agree that Uber Eats provides opportunities for delivery that they would not be able to handle in-house
How does Uber keep communities safe?
Contributing to the ability of riders to get to and from their destination in a safer way is a central tenet of the support Uber offers to local communities.
Helping get people home safe at the end of the night is core to this:
of riders say safety is one of the most important reasons why they choose to ride with Uber
of riders who rode with Uber in the last year said Uber was the safest way to get home late at night
of riders told us that without ridesharing platforms like Uber it would be very or somewhat difficult to find a safe way to travel at night
of riders report frequently using the “Share my Trip” feature when travelling with Uber
Having Uber available in cities can also support a reduction in impaired driving, traffic collisions. Our polling found that:
of riders who had used Uber in the last year reported using Uber after consuming alcohol, instead of driving a car, therefore potentially avoiding drunk driving incidents
of Uber users believe that having options like Uber helps reduce impaired driving in an area
Uber and Uber Eats have partnered with AXA, Reacciona por la Vida, and the Mexican Red Cross as part of the platform’s commitment to promoting safer streets for everyone – particularly for the most vulnerable on the road.
How has Uber contributed to the eradication of violence against women?
In Mexico, more than 70% of women over 15 years of age have suffered at least one incident of violence, whether psychological, economic, patrimonial, physical, sexual or discrimination.1 Uber is committed to eradicating any instances of gender-based violence across its platforms and beyond.
To increase the safety of female riders, Uber implements technology and protocols before a trip begins: from comprehensive background checks and facial recognition technology, alongside information sessions and campaigns to prevent inappropriate comments or behaviors.
Uber is also proud to partner with a number of critical initiatives and institutions as part of our ongoing commitment to the safety of women and the fight against gender-based violence.
Partnership: Sintrata
Since 2018, Uber has partnered with Sintrata, A.C., the Citizen Council of Mexico City, and the United Nations Office on Drugs and Crime (UNODC) to take action against human trafficking.
The initiative aims to provide registered Uber drivers and delivery partners, as well as millions of users across the country, with the digital tools to learn how to safely and anonymously identify and report potential cases of human trafficking.
The help button in the Uber app then allows drivers, delivery partners and users to have quick and easy access to the National Human Trafficking Hotline of the Citizen Council.
Partnership: Red Nacional de Refugios AC
Uber has facilitated over 3,000 free rides in various cities nationwide to support the National Shelter Network (RNR), assisting at-risk women in their transportation and receiving specialized care and protection.
The initiative commenced during the COVID-19 pandemic, where isolation led to unintentional challenges for the most vulnerable people, including victims of gender-based violence. Thousands of women faced increased risks, with few safe options to access resources, seek help or plan an exit.
Uber has helped manage transfers for women at risk who need to leave their homes, and to help shelters and safe spaces continue to provide specialized care and protection to hundreds of women, girls and boys in need of assistance.
Partnership: Fundacion Origen
In 2022, Uber launched a new partnership with the non-profit organization Fundación Origen. This initiative consists of the creation of a free 24/7 psychological assistance telephone line, confidential and exclusive for drivers and delivery partners who use the Uber or Uber Eats platforms.
The objective of this alliance is to offer an option for emotional support in situations of gender violence in any area of their lives, whether domestic violence, street harassment, sexual assault or any experience that hinders their development.
The number is operated by Fundación Origen, an organization with more than 20 years of experience that has a methodology and care protocols unique in the country for crisis intervention and therapy.
Fundacion Origen offers women drivers and delivery partners up to 10 telephone sessions to follow up on a specific problem, with professional support to identify the problem, resources and possible actions. Calls received on this line are entirely confidential.
Partnership: Fondo Semilas
Since 2018, Uber has maintained an alliance with the FONDO SEMILAS to support various projects aimed at strengthening women’s rights. Uber supports three organizations through donations:
- La Colectiva de sobrevivientes de feminicidio, located in Xalapa, Veracruz, formed by survivors of attempted femicide and indirect victims who promote the rights of victims and survivors. They are a peer support group that provides mutual support in their journeys as survivors of lethal violence.
- De Morras para Morras, an organization offering self-defense classes in Torreón, Coahuila for women, adolescents and girls.
- Más Sueños, A.C., an organization working in areas with high marginalization, poverty, and a high incidence of violence against women in Mexico to offer a dignified space in which each person can receive the psychological, social and legal support they deserve.
Conclusion
This report demonstrates that Uber’s contributions to Mexican society and the economy have been multifaceted over the last decade. Uber continues to innovate and offer new products across the market, with more and more options available for people to move and obtain what they need efficiently, reliably and sustainably. At the same time, Uber and Uber Eats promote flexible and independent economic opportunities for thousands of people and businesses.
Methodology
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Total Economic Impact
Total economic impact is calculated as the sum of:
⦁ Driver and delivery partner earnings
⦁ Indirect and induced impact of driver and delivery partner spending on vehicles.
⦁ Induced impact of additional driver and delivery partner earnings
⦁ Indirect and induced impact of restaurant spending via Uber Eats.
This measure is a gross estimate, looking at the total amount of economic activity supported by Uber in Mexico. It does not attempt to measure what would happen in a hypothetical where Uber no longer existed.
Our modelling does not include the impact of Uber’s direct investment or employment footprint as a platform, or any spillover effect this has on the wider tech ecosystem.
Impact on the night time economy
We used Uber’s internal data on the number of trips and users alongside Public First polling to gauge Uber’s role in evening outings for the average Uber user over the course of a year. This was then multiplied by the number of users and an estimate on the average spend per evening to calculate the total annual spend.
Following standard input-output methodology we calculated the output multipliers of businesses in the accommodation and food services sector to estimate the total impact on the economy.
Impact on restaurants
The model utilises Uber’s internal data on the total payout to restaurants via Uber Eats. We estimate the proportion which is additional using the average of consumer polling undertaken by Public First, Collison’s (2020)2 estimated range of the proportion of dollars spent on food delivery apps that are incremental, and figures from Deloitte’s 2019 report “Delivering Growth”.3
Following standard input-output methodology, we used the latest OECD input-output tables to calculate Type 1 and Type 2 output multipliers for restaurants in Mexico. These multipliers are used to show the total impact via restaurants UberEats has on the economy.
Impact on tourist industry
To measure the impact Uber has on the tourism industry, we average the results from two methods to find impact on overall tourist spend:
- The first approach draws on figures from Park (2020)4 on the effect of Uber on tourism and applies the relevant findings to the Mexican tourism industry.
- The second approach uses Uber’s internal data alongside Public First’s survey data to estimate the number of Uber trips taken by tourists that would not have happened otherwise and the subsequent spending that occurred as a result.
Consumer
Consumer Surplus
Following the methodology of Brynjolfsson, Collis and Eggers (2019), we asked riders and Uber Eats users a single discrete binary choice question in the form:
“Now imagine you had to choose between the following options. Would you prefer to keep access to [Uber for rideshare/Uber Eats] or go without access to [Uber for rideshare/Uber Eats] for one month and get paid MX$X?”
The price offered was randomized between MX$10, MX$20, MX$40, MX$85, MX$170, MX$420, MX$840, MX$2100, MX$4200 and MX$8400.
We then computed a logarithmic regression of the results of this poll to derive a demand curve and the total consumer surplus per user, taking the median as the headline measure. This was then scaled by the number of Uber users.
Time Saved
As part of our polling, we asked riders for the duration of their most recent trip with Uber, and how long the next best alternative would have taken.
We then used the difference to estimate the relative time saved per trip and applied this to data provided by Uber on the average trip duration. We then multiplied by the total number of annual trips to estimate total time saved per year.
- Instituto Nacional de Estadística y Geografía (INEGI), 2021.
- https://web.stanford.edu/~leinav/teaching/Collison.pdf
- https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/corporate-finance/deloitte-uk-delivering-growth-full-report.pdf
- https://journals.sagepub.com/doi/abs/10.1177/0047287520951638?journalCode=jtrb
- Open Text responses were corrected for spelling and grammar, but are otherwise unchanged.