São Paulo Brings Regulated Ridesharing to Brazil

Within a few short years, ridesharing services like Uber have been embraced by policymakers around the world. From Mexico and Australia to Estonia and India, services like Uber are delivering benefits to riders looking for more ways to get around, drivers looking for new economic opportunities, and cities looking to manage congestion and extend the reach of public transit. Smart regulations can let these services grow while ensuring public safety and protecting consumers.

We’re excited that this week São Paulo has joined the list of places to embrace this new mobility option. The mayor of São Paulo signed a decree that will allow Uber and services like it to operate in the largest city in Latin America. The decree gives official blessing to ridesharing as a new mode of private transportation, distinct from taxi service.

Importantly, the bill will allow for the number of available cars and the price of a ride to adjust in real time, so that services can meet rising demand for rides at peak times. In other places around the world, we’ve seen that such an approach allows for ridesharing to unlock vast new markets untapped by taxi, and to provide service in areas that have never benefitted from the availability of traditional taxis.

São Paulo is also breaking ground in its approach to collecting administrative fees. Rather than a flat fee, which has been the approach many cities have taken, services like Uber will pay an administrative fee based on the number of kilometers traveled on a trip. While this fee may seem analogous to congestion charges like that used in Singapore, this fee is not directly aimed at impacting congestion on São Paulo’s streets.

For a system to encourage the efficient use of roadways, fees would need to be applied uniformly across all types of vehicles. What will reduce congestion is getting more people into fewer cars — which is one reason we’re so excited about the potential carpooling services like uberPOOL offer cities. Already today 20 percent of Uber trips globally are on uberPOOL.

We’re excited about the path that São Paulo has chosen as the city looks to adapt its regulations to keep pace with new options being enabled by technology. São Paulo has taken a leadership position on regulated ridesharing across Latin America.