Hundreds of drivers for Uber, the Internet supported ride-hailing company, drove through biggest cities of Brazil this week to object legislation that might turn them into normal taxi drivers subject to the similar taxation and local licensing regulations. Dara Khosrowshahi, the Uber Technologies Inc’s chief executive, came in Brazil to protest against the bill that, on by the Senate this week, is due to be voted. This bill intimidates the business of the company in a fast-developing foreign market. Brazil is 3rd largest market of Uber, with almost 17 Million customers, and the Sao Paulo city witnesses more trips on the ride-hailing facility as compared to any other city all over the world, ahead of Mexico City and New York, as per the firm.
A company spokesman claimed that the application as it lives can’t operate below the new regulations, comprising the employment of a taxi license plate on vehicles possessed by drivers of Uber. “The business model we have in this era might not longer be feasible,” Fabio Sabba, executive spokesman of Uber in Brazil, claimed to the media in an interview. Uber is already grappling to keep working in London after the transport regulator of the city believed it to be unfit to operate a taxi service and declined to renovate its license. Police claimed that almost 800 drivers of Uber drove via the center of Brasilia (Brazil’s capital) to object the bill that most of them claim will put them out of trade. Similar objections in Rio de Janeiro and Sao Paulo knotted downtown traffic.
Uber did not organize the protests of the drivers but warned authorities that they might occur. “The bill will make a bunch of official procedure that it avoids the 500,000 drivers in Brazil from getting revenue for their families,” Uber claimed to the media in a statement. Uber claimed that it has given 495 Million Reais (almost $150 Million) in municipal and federal taxes this year so far. The bill that has already been accepted by the lower house of Congress, might describe applications of ride-hailing firm as a public transport in place of private services.