Brazil's President Says Uber Costs Jobs, Needs Regulation

Advertisement
By Reuters | Updated: 3 September 2015 10:23 IST

Brazil's President Dilma Rousseff criticized ride-sharing software Uber on Wednesday for increasing unemployment, adding to a chorus of labour concerns about the world's most valuable venture-backed start-up.

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.

Advertisement

Sao Paulo, Rio de Janeiro and the capital Brasilia have all moved to ban the mobile application, which lets users hail Uber drivers for rides. None of the bans has yet taken effect, as mayors weigh whether to approve the laws.

In June, French President Francois 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.

Advertisement

"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 on Wednesday. "It's not an easy issue. It depends on the rules of each city and state, because it is not a federal government decision," she said.

The San Francisco-based start-up declined to comment.

Advertisement

In Brasilia, 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.

Advertisement

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 Inc is an official accommodation provider for the 2016 Olympic Games next year in Rio, which has a paucity of affordable hotel options.

In Brazil's largest city, Sao Paulo, a vote to ban the ride-sharing software is also awaiting a second vote from the city council and the signature of 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 co-existence between the ride-share service and city taxis.

Taxi drivers complain that Uber drivers are not properly regulated and have fewer overhead costs, giving them an unfair advantage.

© Thomson Reuters 2015

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Airbnb, Apps, Uber, Uber App, Uber Taxi App, UberPOP
Advertisement

Related Stories

Popular Mobile Brands
  1. Apple Brings New Wallpaper, Apple Music Playlist Ahead of WWDC 2026
  2. Vivo Y500 Surfaces on Bluetooth SIG Database With Multiple Model Numbers
  3. Computex 2026: Top 10 Product Launches and Announcements on Day 1
  4. Sony Bravia 7II 4K TVs With Cognitive Processor XR Debut in India
  5. iPhone 17 Won't Start After Battery Runs Out? Apple Says iOS 26.5.1 Fixes It
  6. Hisense Launches U7SE 144Hz ULED Mini-LED TV Series in India
  1. Anthropic Expands Project Glasswing to 15 Countries, Brings Claude Mythos to India
  2. Nothing Ear 3a, CMF Buds Neo Spotted on Regulatory Databases Ahead of Anticipated Debut
  3. Samsung Galaxy Z Fold 8, Galaxy Z Fold 8 Ultra Could Feature Vastly Different Designs, Leaked Dummy Units Suggest
  4. Hisense U7SE 144Hz ULED Mini-LED TV Series With Up to 100-Inch Screens Launched in India: Price, Features
  5. Vivo Y500 Surfaces on Bluetooth SIG Database With Multiple Model Numbers, Could Launch Soon
  6. Asus Ascent QN10 Mini PC With Snapdragon X2 Elite Chipset Showcased at Computex 2026
  7. MSI Showcases New Katana, Venture Laptops and Crosshair A16 HX MLG Edition at Computex 2026
  8. Acer TravelMate P6 14 AI and P2 Spin 14 Unveiled, Acer TravelMate X2 15 and X2 14 Tag Along
  9. Sony Bravia 7II 4K TVs Launched in India With Cognitive Processor XR, Dolby Vision: Price, Features
  10. Asus TUF 16 (2026) Gaming Laptop Unveiled Alongside ExpertBook B5 Flip G2 (2026) at Computex 2026
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.