Sao Paulo proposes Uber fee in attempt to regulate app
RIO DE JANEIRO Dec 29 (Reuters) - Sao Paulo's city hall on Tuesday issued a proposal to levy fees on the ride-hailing service Uber, the second attempt by Brazil's largest city to regulate the fast-growing service that has sparked anger amongst taxi drivers.
The proposal, which is open to public consultation over the next 30 days, suggests that apps connecting users and motorists be obliged to register with city hall and buy credits from the government to cover kilometers traveled. The price per kilometer paid to the city would vary, depending on time of day, distance and location.
Ride-hailing apps, the most popular of which is Uber, will also be given six months to develop the capability to allow drivers to pick up multiple users with similar destinations, a proposal meant to alleviate fears of adding more cars to already-congested roads.
Uber did not immediately respond to a request for comment.
The proposal comes after a first attempt to regulate Uber failed in October. Then, city hall created a new category of taxi know as "black cabs" after the executive cars offered by Uber. However, the company said it was not a taxi service, ignored the legislation and continued to operate as normal.
In Rio de Janeiro, Brazil's second largest city, Uber was banned by the mayor in September but the service also continues to operate normally. (Reporting by Luciana Bruno; Writing by Stephen Eisenhammer; Editing by Bernadette Baum)
© Thomson Reuters 2016 All rights reserved.