bill in São Paulo limits cars to the number of taxis – Brazil

a bill at Sao Paulo City wants to impose new rules for the functioning of the Uber, 99 and Cabify: the total number of drivers in these services cannot exceed the number of taxi drivers in the city. Companies will have to buy “kilometers credits” so that partners can operate in the capital of São Paulo. In addition, the vehicle must be in the driver’s name, excluding rental cars.

Uber app - driver

O bill 419/2018 it is authored by city councilor Adilson Amadeu (DEM), who represents taxi drivers, and wants to regulate passenger transport through an application. It was approved by the CCJ (Commission for Constitution and Justice) and should be voted on by the São Paulo City Council later this week.

In a statement to the Shipping Diary, Amadeu says that “the urban road in the city of São Paulo no longer supports this flood of application cars… we have to be responsible for the discussion and find ways to make this model sustainable”.

The councilor is the same one who, in 2017, proposed to limit the total number of drivers per application 20% of the taxi fleet. He called for the withdrawal of Bill 45/2017 “for necessary adaptations”; the result is the PL that we explain below.

Number of drivers cannot exceed taxi drivers

PL 419/2018 establishes that the number of vehicles accredited to offer Uber services, 99 or any similar service cannot exceed the number of taxis. The text mentions taxis indirectly, referring to them as individual public transport “upon license”.

“The accreditation of vehicles for the remunerated private transport service will be authorized by the municipality… the total amount of which will never be greater than that offered by means of a permit for individual public transport”, says the bill.

It is estimated that there are 40 thousand taxi drivers in São Paulo, against 250 thousand vehicles that operate in transport via the app. Other cities have already tried to set a maximum limit for application cars, such as Recife, Curitiba and Campo Grande, but they went back. STF (Supreme Federal Court) ministers believe the measure is unconstitutional.


Races will have maximum value and will consume km credits

In São Paulo, the bill establishes the CMMV (Municipal Committee of Malha Viária) to monitor the activity of transport companies via app. It will be chaired by the Municipal Secretary for Mobility and Transport, and will have the participation of other secretariats and a councilor from the Traffic and Transport Commission.

Uber, 99 and other companies are defined as OTTCs (Accredited Transport Technology Operators). They will have “freedom to set the fare” charged to passengers, says the PL, but they must respect a maximum value to be defined by the CMMV.

In addition, the project states that OTTCs will have to buy kilometers credits. That is, if Uber drivers travel 100,000 km for a month, Uber will have to pay the city a fee proportional to that distance. This goes for 99, Cabify and others.

The value of these credits would be defined by the CMMV after the approval of the project. They will serve “as a counterpart to the right to use the road network”, says the text.

Some types of vehicles and races will consume fewer credits than normal: this will involve the circulation time, the location of the vehicle during the journey, the presence of accessibility features, and the integration with other modes of public transport. The benefit also applies to clean or hybrid cars.

Drivers must have a vehicle in their own name

To the drivers, there are also new rules. They must provide their services “solely and exclusively through OTTCs”, that is, they will not be able to run outside the application. The vehicle must be in your name and licensed in the municipality of São Paulo, which would exclude rented cars; and must have a maximum of 8 years of manufacture.

The PL also requires that at least 5% of the kilometers credits be consumed per month “exclusively by female drivers”. This requirement for distances traveled by women drivers it rises to 10% after eighteen months, and to 15% after twenty-four months.

The project authorizes services like Uber Together in São Paulo: “OTTC may provide a system for dividing runs between calls from users whose destinations have converging routes”. These split races are limited to up to 4 passengers per vehicle.

It is worth remembering that this PL still needs to be approved by the São Paulo City Council, to be sanctioned or vetoed by Mayor Bruno Covas (PSDB).

Tecnocast 127 – Stupid laws in technology

We are seeing a series of bills related to technology under way in Congress. If approved, the new rules could affect streaming platforms, per-app transport services and even 5G. We comment on our view of some of the projects of deputies and senators in Brazil. Play and come with us!

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