Brazil Nods On Amended Bill On Car-Hailing Apps

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Senate of Brazil accepted a feebler version of a fiercely disputed bill to control car-hailing services such as Uber Technologies Inc. this week after the chief executive of the U.S. company cautioned it might make its business not viable in the nation. Dara Khosrowshahi, who conducted discussion with senior officials of Brazil in the capital Brasilia, had asked for senators to eliminate rules in projected legislation that might need Uber drivers to be approved with their domestic municipalities, such as taxis, and to utilize their own vehicles.

Uber has claimed that, if the bill was accepted in its new form, it might weaken its ability to work in Brazil, its 2nd largest market, by making it too bureaucratic and expensive for most of its drivers. That might damage the livelihoods of almost 500,000 individuals driving for the firm in largest economy of Latin America, as per Uber.

Following a plea by Khosrowshahi for more sensible regulation and greater dialogue, senators decided to alterations dropping needs that drivers own their vehicles and have the similar red number plates utilized by public transport cars such as taxis. On the other hand, lawmakers kept regulations that make drivers dependent on local city authorities for taxes, licensing, and other regulations. The bill for final approval must return to the lower house.

The regulatory onslaught in Brazil takes place post authorities in London made a decision not to renew working license of Uber last month and underlines the lawful threats rising in opposition to its fast-developing foreign process. Khosrowshahi struck a mollifying tone with a Brazilian media in an interview, recommending Uber was open to finding common grounds with domestic lawmakers.

“In the past, we were a little violent, but we have to recognize that it is not just about what we need and arrive at common grounds,” Khosrowshahi claimed to O Estado de S. Paulo this week. “We are not in opposition to the regulation. Regulating services such as Uber is completely appropriate.” On the other hand, after discussions with Henrique Meirelles, the Finance Minister, Khosrowshahi claimed that the future in Brazil for the ride-hailing app relied on the moves made in Brasilia.

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