In a statement, the firm said its business model has not worked as expected in the Mexican market and that no opportunities have been identified for the future.

The Mexican unit of Spanish ride-hailing app Cabify said on Wednesday that it will cease operations in the Latin American country in October, saying the move is a response to the company's "strong commitment to profitability and growth."

"Cabify's business model, which seeks to create a new Ibero-American mobility, has not worked as expected in the Mexican market and no future opportunities have been identified," the company said in a statement, where it detailed that the cessation of activities will affect five employees in total.

Last May, in its '2023 impact report' Cabify reported that it increased its gross profit by 40.9% in that year to US$ 111.1 million and placed its turnover at just over US$ 899 million, 30.7% more than in 2022.

He also said that the improvement in business had occurred equally in Spain and Latin America, especially considering the metrics of the ride-hailing vertical - Cabify's main business - where it has maintained the billing levels that have not been disclosed.

The company's executives also confirmed that the firm's IPO "is part of its business plans," although they ruled out the possibility of it happening in the near future.