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Rio de Janeiro city will tax 1.5% of each ride after a new app regulation

According to the decree, the funds raised from the rides made by urban mobility app will be used for the maintenance of roads in the city

Photo: REUTERS/Ricardo Moraes
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The city of Rio de Janeiro decided to charge 1.5% of each ride made by ride-hailing app, like Uber or 99, after a new app regulation. Charging fees for this type of service have been debated for years in the city and the new rules will come into effect within a month.

According to the decree, the funds raised from the rides made by urban mobility app will be used for the maintenance of roads in the city.

The new regulation also stipulates that apps drivers must meet several requirements to be able to run in the city. Among the obligations is the hiring of Personal Accident Insurance to Passengers, for example.

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Drivers will also need to register as individual contributors to the National Social Security Institute (INSS) and have a National Driver’s License at least in category B containing the information that the driver is engaged in paid work. App drivers’ vehicles can have a maximum of 10 years of use, at least four doors, and a maximum of seven seats. The driver must also not have a criminal record.

What the main ride-hailing companies say

99 stated that since 2019 “the Supreme Federal Court (STF) considers that restricting the use of urban mobility apps is unconstitutional and violates principles such as free enterprise and competition”.

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Uber questioned why the 1.5% fee was charged only for ride-hailing apps. “It is necessary to understand the reasons for the specificity of charging only for mobility apps, considering that other vehicles, such as cargo vehicles, which have a greater impact on pavement wear, for example, are not taxed,” said the American company.

Translated by LABS.

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