Brazil is where Uber makes the most rides in the world and we will not leave the country even with the change in law, says CEO
Uber's CEO Dara Khosrowshahi confirms the company's commitment to Brazil despite potential legislation that could force it to treat drivers as employees, which may drastically hike ride prices.
In a recent interview with Folha, Uber CEO Dara Khosrowshahi addressed concerns regarding proposed Brazilian legislation that aims to classify app-based drivers as employees. He highlighted that this change could lead to a 60% increase in ride prices and a potential reduction in the company’s business operations in the country. However, Khosrowshahi reaffirmed Uber's intention to remain operational in Brazil, emphasizing its importance as the market where the company conducts the most rides worldwide.
Khosrowshahi's visit to Brazil coincided with meetings with government officials in Brasília, where discussions focused on bill 152/2025, which seeks to regulate app-based work. This bill proposes minimum wage requirements for drivers and social security benefits, consequently altering the working relationship between Uber and its more than two million drivers in Brazil. The legislation represents a significant shift in labor relations in the increasingly influential gig economy.
Overall, the interview highlights the delicate balance Uber must maintain with both regulatory demands and its operational viability in one of its most lucrative markets. With over 85% of Brazilians having utilized Uber at least once, the company’s presence in the country is not just significant for its global statistics but also indicative of the changing dynamics of employment in the platform economy. Khosrowshahi's comments reflect the company's strategies to adapt to local regulations while trying to maintain its competitive edge.