What’s wrong with ride-hailing in South America? Like in Colombia, ridesharing is not completely and openly welcomed in Brazil.
Uber is facing altercations with Brazil’s government and has found a friend in the Chinese-owned ride-hailing platform 99. Together, they want an end to the government restrictions. Here’s the story.
‘Disobedience’
Brazil enjoys a population of more than 211 million people, the seventh-largest in the world. That said, it is also the largest ride-hailing market in Latin America, but the most hugely demanded are the two-wheelers or motorcycles.
While ridesharing is widely accepted in several destinations in Brazil, it is no other than, and worse, in São Paulo itself that ridesharing is being frowned upon. It has been this case since 2023 when the service was suspended. For contexts on the reasons why, visit this link.
However, Uber’s marketing efforts are doing their best to manage the losses. In fact, their advertising messages are government-defying – so brave.
A digital billboard along one of the busiest streets in São Paulo is loud and proud, reading, “Uber Moto: Rio de Janeiro has it. São Paulo doesn’t.”
Owned and managed by Uber, Uber Moto is the platform’s other transportation service, providing on-demand motorbike rides. Uber Moto is practically a way for passengers to request a motorbike ride via the Uber app, similar to how car rides are requested. That makes things even more convenient.
São Paulo is among the key travel destinations in Brazil. It’s hip, it’s fast, it’s always moving, always changing. Home to Parque Ibirapuera, Paulista Avenue, and the Pinacoteca do Estado de São Paulo, this place is also the site of some of the world’s biggest events.
Apparently, Uber has found a friend with its competitor, the Chinese-owned ride-hailing platform 99.
Formerly referred to as 99Taxis, 99 in Brazil is owned by China’s DiDi Chuxing. In 2018, DiDi acquired full control of 99, making it a significant player in the Brazilian ride-hailing market.
Together, 99 and Uber defined the bans in São Paulo, but only to get sued by the city. This underscores the continuous conflict between these ride-hailing apps and local governments not just in Brazil but across South America, too.
Experts are saying these companies go on adopting “a strategic disobedience to open new markets.”
Well, if you are being restricted, are you just going to nod your head?
International clashes
Interestingly enough, it is not only in Brazil where clashes between regulators – usually the government – and the ridesharing companies exist. Users are quick to adore the faster and more convenient ride-hailing options, a reason why the government is raising their eyebrows on them.
Regulators in these regions are scrambling to balance things out to address issues like competition, safety, and data privacy.
In 2018, Brazil enacted a federal law requiring municipalities to regulate and oversee the services.
However, the following year, the Brazilian Supreme Court tamed the anger of the platforms as they ruled that cities could not ban ride-hailing since those bans are unconstitutional, violating the principles of free enterprise and fair competition.
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