Brazil’s Senate approved legislation regulating ride-hailing phone applications, such as the popular Uber application, on Tuesday. The bill is an amended version of an earlier bill that would have required drivers to use their own cars and register with local municipalities (Reuters 1). After discussing regulations with Uber CEO Dara Khosrowshahi, legislators removed those requirements, but kept rules that obligate drivers to follow local tax and licensing laws (Reuters 2). The bill must now pass through the lower legislative house before becoming law.
Following Senate approval of the bill, both Uber drivers and traditional taxi drivers gathered to demonstrate (AP). Uber drivers criticized the bill, arguing that regulations would destroy their livelihoods and potentially put Uber out of business in Brazil, the app’s second-largest market (Reuters 1). Taxi drivers like Antonio Barbosa assert that lack of regulation on Uber drivers has damaged traditional taxi services in the country. When interviewed, Barbosa said, “Uber is destroying our age-old profession with unfair competition” (Reuters 1).
Tags: South America, Brazil, Uber, transportation