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Uber signs Latin America tie-up with Slim's America Movil

Published 12/02/2014, 03:09 PM
Updated 12/02/2014, 03:09 PM
© Reuters. An illustration picture shows the logo of car-sharing service app Uber on a smartphone next to the picture of an official German taxi sign

MEXICO CITY (Reuters) - Uber Inc has signed a deal with billionaire Carlos Slim's America Movil to bring its app, which allows users to summon a car on their smartphones, to new customers in Latin America in a move it says could be a model for other regions.

Starting on Tuesday, the Uber app will be promoted on millions of Android phones that use telecoms company America Movil (MX:AMXL) as their carrier, including 10 million in Mexico, Uber said.

Customers will get a 150 peso ($10.64) discount on their first ride, and Uber drivers in Mexico will get discounts on packages with Telcel, America Movil's wireless firm in the country.

Uber signed a similar deal earlier this year with U.S. carrier AT&T (N:T). Uber said on Tuesday that it is working to expand the deal with America Movil to other sectors, and that the partnership could serve as a model in other regions.

America Movil, controlled by the family of Carlos Slim, the world's second richest man according to Forbes, has around 241 million wireless subscribers in Latin America and the Caribbean.

The company does not break down which subscribers use smartphones.

Around 42.9 percent of mobiles in Mexico, where Uber started its Latin America operation last year, were smartphones in mid-2014, the Competitive Intelligence Unit said in October.

Uber Latin America spokeswoman Ana Paula Blanco said the company did not pay America Movil for the deal, but that it was the beginning of a "relationship" between the two companies.

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America Movil did not immediately return a request for comment.

(Reporting by Christine Murray; Editing by Lisa Von Ahn)

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