Uber increases unemployment and needs regulation, says Brazil's president
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Version 0 of 1. The president of Brazil, Dilma Rousseff, has criticised ride-sharing service Uber for increasing unemployment, adding to a chorus of labour concerns about the world’s most valuable venture-backed startup. Rousseff said local authorities must regulate the service, which has led conventional taxi drivers to stage protests and lobby lawmakers in Brazil’s three biggest cities. Related: The great Uber fairness fallacy: as a driver, how do you bargain with an app? São Paulo, Rio de Janeiro and the capital, Brasília, have all moved to ban the mobile application, which lets users hail Uber drivers for rides. None of the bans have yet taken effect, as mayors weigh whether to approve the laws. In June, French president, François Hollande, said the low-cost UberPop service should be illegal, following violent protests by Parisian taxi drivers. Uber drivers in the United States won class action status on Tuesday for litigation demanding employee benefits. “Uber is complicated because it takes jobs away from people … it leaves taxis with less work,” Rousseff said in response to a reporter’s question. “It’s not an easy issue. It depends on the rules of each city and state, because it is not a federal government decision.” The San Francisco-based startup declined to comment. In Brasília lawmakers have voted to ban the unregulated services of Uber, but the federal district governor vetoed the ban and set up a commission to decide what is best for the city. In Rio the city council proposed a bill to prohibit unregulated taxi services, in a move designed to ban Uber. The mayor, Eduardo Paes, has not yet decided whether to sign it into law but has said he would like to develop a rival technology for the city’s taxi drivers. The chilly reception for Uber contrasts with Rio’s embrace of another icon of the so-called “sharing economy”. Home rental marketplace Airbnb is an official accommodation provider for the 2016 Olympic Games in Rio, which has a paucity of affordable hotel options. In Brazil’s largest city, São Paulo, a vote to ban the ride-sharing software is also awaiting a second vote from the city council and the signature of the mayor, Fernando Haddad. Uber has support from Brazil’s antitrust watchdog Cade, where officials see the advantages that increased competition could bring to users, and advocate a negotiated coexistence between the ride-share service and city taxis. Taxi drivers complain Uber drivers are not properly regulated and have fewer overhead costs, giving them an unfair advantage. |