Brazil's biggest city wants to charge fees for Uber rides

Sao Paulo would rather take a cut from Uber's sales than ban it outright.

Sponsored Links

Brazil's biggest city wants to charge fees for Uber rides

Many cities try to limit or ban ridesharing services like Uber, but Sao Paulo is trying an uncommon strategy to keep the companies in check: skimming a little off the top. The major Brazilian city has proposed a requirement these services have to buy government credits to cover their distance traveled, with rates changing based on when and where the trip takes place. App makers would also have to support a service that picks up multiple passengers headed in the same direction, although that won't be hard when options like UberPool already exist.

Believe it or not, Uber is happy with the concept. It sees the credit model as "innovative," and plans to contribute to the proposal's 30-day public comment period. It's not hard to see why the firm is so happy, mind you. Although Uber is determined to keep costs down whenever possible, it's most concerned with preserving business as usual -- it'd rather pay a small fee than face something like Rio de Janeiro's attempted ban. Sao Paulo's taxi drivers aren't nearly so pleased (they've protested in favor of heavy regulation or bans), but they might not have much choice if the proposed measures stick.

[Image credit: Nelson Almeida/AFP/Getty Images]

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Popular on Engadget