Mar 10 • 16:44 UTC 🇧🇷 Brazil Folha (PT)

App Rides May No Longer Have Minimum Value; Vote on App Work Will Be in April

A proposal regulating app-based work that includes removing the minimum fare for rides is set to be voted on in April.

Brazil's Chamber of Deputies, led by President Hugo Motta, announced that a proposal to regulate app-based work will be voted on in April. This proposal involves a controversial decision to maintain a minimum payment for deliveries but remove the minimum fare for rides. The issue of fare pricing has become particularly contentious, with 25% of rides currently under the proposed minimum fare of R$ 8.50, prompting lawmakers to reconsider the inclusion of drivers in the new regulatory text.

Deputy Augusto Coutinho, who is reporting on the issue, plans to meet with members of President Lula's government to negotiate a consensus on the fare floor. The discussions highlight the complexity of app-based work regulation in Brazil, especially the balance between protecting workers' earnings and ensuring the sustainability of the app-based business model. As app services continue to grow, the outcomes of these regulatory decisions will significantly impact the drivers' livelihoods and the operational costs for companies like Uber and other ride-hailing services.

This proposed regulation and upcoming vote could set a precedent for how gig economy work is treated in Brazil in the future. If the minimum value for rides is eliminated, it may lead to more competition among drivers, but it could also diminish earnings for many workers who depend on app-based driving for their income. The decision will be closely watched by various stakeholders, including drivers, app companies, and the government, as they navigate the delicate balance between worker protection and economic viability in the gig economy.

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