Uber Banned In Rio de Janeiro

Authorities of Rio de Janeiro have prohibited Uber's service.

The Brazilian authorities have disappointed the American app-based cab service company, Uber. The city known for hosting the next year’s Olympic Games has taken the first position in banning the taxi platform operator in Brazil. Mayor of Rio de Janeiro, Eduard Paes, on Tuesday approved the law lately voted for Rio’s city council banning the provision of Uber and other similar services in the city. After signing the legislation, Eduardo stated, “Uber is forbidden, we are open to discuss the matter, but it is forbidden.”

Uber news affirmed that the transporter’s drivers, who do not act according to the new law, could be fined $500. The San Francisco based organization believes that it is a gloomy day for the city. To appease taxi owners in the city, Mayor Paes endorsed an unpleasant law to sanction technology from the city, leaving its residents with lesser options to travel around. The taxi service stated that it is reviewing possible legal measures.

Uber news today revealed that in the largest city of Brazil, the city council of Sao Paulo also approved a law prohibiting Uber’s service in the current month, but Mayor Fernando Haddad still needs to sign or veto the law. Fernando informed the Globo Network that he was interested in finding a “middle path” to deal with the issue. He stated, “We aren’t thinking only about Uber. We are thinking of ways to include this new technology in our city’s regulations.”

Uber technologies exclaimed that cab operators have complained that the company is an unjust rivalry and have launched protests against the company. Rio taxi driver, Elizeu Soares, stated, “They are a multinational that pays no taxes. How can we compete with that? We have to go through inspections; they do not. We have to pay for special documentation; they do not. The only advantage we have is to pay a bit less when we buy new cars, but even that does not make up for all the costs. They can’t just come to Brazil and throw us out of business.”

Belo Horizonte and Brasilia are the two other cities in the South American country where Uber operates. To confirm that the company does not spread, city councils in at least 13 other state capitals have legislation pending approval to ban the company.

It is probable that the ban would not only decrease its market share and revenue but also damage its reputation in the competitive market.