Brazil Congress Moves to Derail Uber and Company

Brazil’s lower house of Congress voted Tuesday to give cities greater power to regulate ride-hailing app Uber and other transportation apps, paving the way for local governments to charge taxes, require insurance and pension benefits for drivers.

In a symbolic vote, a majority of lawmakers approved the main text of the bill and voted on specific items that still need to be cleared in the Senate. One of the approved amendments would require cities to authorize Uber services.

The bill will as written now transform Uber cars, into taxis, with the same regulations. Uber drivers would have to get permission from city authorities to operate.

With the bill approved on the House, the legislation goes now to the Senate. Taxi drivers should put a lot of pressure on the legislator to make the bill into law.

The amendment that makes ride-hailing services a public interest activity, could interrupt Uber services in cities that lack regulation, Daniel Coelho, one of the lawmakers in charge of drafting the legislation, told reporters after the vote.

Uber said in a statement that the bill proposes “a backward law that does not seek to regulate Uber, but to turn it into a taxi (operator).”

The company added it expects the debate to continue in the Senate to “ensure that the voice of millions of people in Brazil who wish to have their right of choice is heard.”

Although the overall impact is not immediately clear, the legislation could increase the cost of the ride-hailing app in Latin America’s biggest consumer market.

Brazilian taxi unions and many politicians have accused Uber of unfair competition, triggering protests by taxi drivers in some cities and even attacks against Uber drivers.

Adding to Uber’s woes in Brazil, Spanish rival Cabify earlier Tuesday announced an investment of US$ 200 million to bolster its participation in South America’s largest country.

Taxi drivers in other Latin American countries, such as Costa Rica and Paraguay, have also protested against Uber saying that the company threatened their jobs and livelihood.

teleSUR

Tags:

Ads

You May Also Like

On the Verge of Being Ousted, Brazil President Counts on a Slow Justice to Complete His Mandate

Brazilian President Michel Temer’s government expects a federal judge to recommend his removal for ...

Brazil’s Supreme Decides to Investigate Rousseff and Lula for Obstruction of Justice

Brazil’s Supreme Court (STF) Justice Teori Zavascki has authorized Prosecutor-General Rodrigo Janot to look ...

Netflix star Wagner Moura - Edison Vara/PressPhoto

Goodwill Ambassador Brazilian ‘Narcos’ Star Is on a Mission: End Slave Labor

As a boy growing up in Brazil’s impoverished northeastern state of Bahia, Brazilian actor ...

On Its Way to Become the Planet’s 5th Largest Economy Brazil Shows Vitality and Endurance

After decades of chronic political unrest within a number Latin American countries, that featured ...

Hit by a Police Strike, Looting, Dozens of Dead, Brazil City Begs for the Feds

Brazil sent 200 federal troops into the state of Espírito Santo, in southeastern Brazil, ...

Brazilian army at favela Maré - Tomaz Silva/ABr

Other Violent Brazilian Cities May Be Taken Over by the Army like Rio

Brazilian leaders said that the use of the military to combat rising violence in ...