Michel Temer, President of Brazil, would veto clauses of a bill that would require Uber motorists to sign up with city authorities and turn the ride-hailing app into another form of standard taxi service, a presidential assistant stated on Wednesday.
The president favors striking down the questionable articles of legislation passed by the lower house of Congress on Tuesday if they were not eliminated by the Senate before it was sent for his signature, stated the aide, who was not authorized to discuss about the issue.
Motorists, users and even the speaker of the lower chamber spoke up against the bill that gives cities more power over online ride-hailing services, particularly by categorizing them as public transportation – not a private service.
The modifications would undermine the business design of Uber’s online ride service in its second biggest market by revealing the company to local tax and raising expenses.
In a declaration Wednesday, Uber stated the bill “applies old-fashioned rules to new technology” and would turn Uber into a standard cab service.
The bill, that passed his chamber on Tuesday, is a “step back,” stated Speaker Rodrigo Maia, because customers have shown there is need for the Uber service and taxis alike. He stated he would prompted Michel Temer to ban the bill if it reached him unchanged.
“We need to have a well balanced bill that maintains the taxis, preserves Uber and respects the interests of Brazilians who desire both systems to co-exist,” he informed press reporters.
The bill is the current obstacle to Uber in Brazil, its second-largest market worldwide. The company has already lost battles in four cities where officials successfully controlled or taxed the service and dealt with whatever from blockades to physical attacls by taxi drivers, who accuse it of unfair rivals.
If categorized as a public transport service, rather than a technology firm, Uber motorists would need to get permit from city authorities, who might levy taxes and need insurance and pension benefits for drivers, pushing up expenses.
The company will also have to report the number of chauffeurs it uses, a figure it does not usually disclose, for social security and other possible tax commitments.
Cities might also need vehicles to have unique plates, like taxis, or perhaps require drivers to set up taximeters, a commitment that led Uber to decide to close down services in Denmark on April 18 if a rule there is not altered.
Uber started in Brazil in 2014 and now runs in 50 cities. In the last 3 months, 13 million individuals used Uber, a representative stated.
