Feb 26 • 02:00 UTC 🇧🇷 Brazil Folha (PT)

Reporter of the apps project considers setting regional floors for workers

Deputy Augusto Coutinho is exploring the possibility of establishing minimum fare thresholds for app workers based on regional differences in Brazil.

Deputy Augusto Coutinho, the rapporteur for the app regulation project in Brazil, is considering establishing regional minimum fare thresholds for app drivers to ensure fair compensation across different areas. Current data suggests that 25% of app rides cost less than the proposed minimum fare of R$ 8.50, with some regions like Amapá reporting that nearly half of all rides fall below this rate. This situation raises concerns about maintaining the viability of app services in smaller cities if stricter fare regulations are implemented.

In conjunction with fare thresholds, the deputy is also contemplating capping the fees charged by platforms to workers at 30%, a significant reduction from the current practice where fees can reach as high as 50%. The proposed changes aim to create a more equitable pay structure for app workers, ensuring they receive a fairer share of the revenue generated from their rides. The specifics of the fare thresholds and fee caps will be discussed in an upcoming meeting which includes key stakeholders such as the president of the Chamber and other legislators involved in the project.

The dialogue surrounding this project highlights ongoing tensions between app drivers and the platforms that employ them. With the increased regulation being contemplated, there is potential for a significant shift in how app-based work is structured in Brazil. The outcome of the proposed regulations may influence app service availability, driver compensation, and the overall economic health of smaller towns and regions limited by a lack of passenger demand or different market conditions that affect fare profitability.

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