Uber and 99 sued over alleged bus competition | Brazil

Uber and 99 were sued in court for allegedly offering services that compete with public transport buses. The process, opened in June by the National Transport Confederation (CNT) calls for an end to the shared modalities of companies: Uber Juntos and 99compartha.

Uber

According to the Jota, the CNT states that the process serves to “ensure the maintenance of the public public transport service offered by the municipality”. The entity represents the bus companies through a collective action at the 4th Civil Court of Curitiba.

The CNT understands that collective races, which are cheaper than individual ones, “in a way compete with the tariffs charged for municipal public transport”. Still according to the Jota, a decision favorable to bus companies would make the modalities shared across the country unfeasible.

In order to speed up the process, the confederation issued an urgent advance request on the grounds that bus companies are at risk of not being able to “maintain compliance with concession contracts ”.

The promoter of the 4th Civil Court of Curitiba, Ana Cristina Marins Brandão, did not agree with the request. According to her, the shared modes of Uber and 99 do not compete with buses because they have limited coverage in cities.

Judge Eduardo de Mello Leitão Salmon agreed with the prosecutor and denied the request. For him, the CNT has not demonstrated that the shared modality of Uber and 99 “can cause, in a short term, irreparable losses or difficult to repair public transport”.

The request for urgency was also denied in an appeal filed by the CNT. The rapporteur summoned Francisco Jorge concluded that a service such as Uber Juntos and 99compartha is “a private economic activity of public utility that differs from the public public transport service”.

To Tecnoblog, Uber said its shared modality complements public transportation. “Uber Juntos contributes to reducing the impact of congestion, offering more affordable prices to users while maintaining the earnings of partner drivers.”

The company also argued that studies do not point to a mass migration of public transport users to applications. Available in São Paulo, Belo Horizonte, Curitiba, Fortaleza, Porto Alegre and Goiânia, Uber Juntos is an evolution of the Uber Pool.

99 stated that the private passenger transport service, individual or shared, is in accordance with the legislation and with the understanding of the Supreme Federal Court. “99 will present its arguments in the case file and remains at the disposal of the Court for clarifications pertinent to the case”, says the company. The 99compartha is available in Belo Horizonte and Campinas.

The parties involved in the process are due to meet on Thursday (7) at a conciliation hearing.

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