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Wednesday, March 22, 2023

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99 enters to guarantee the market share left by Uber, contrary to city halls

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Uber announced that it will no longer offer mototaxi services in the capitals (Image: REUTERS/Paulo Whitaker)

THE Uber (UBER) announced this Monday (30th) the suspension of its motorcycle passenger transport service in the city of São Paulo following a ban by the city of São Paulo.

Contrary to the measure, the company 99 announces that the motorcycle delivery service in Sao Paulo and Rio de Janeiro.

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Starting next Tuesday (31), the app 99 will offer the 99 Bikethe company’s motorcycle taxi service, in the Greater São Paulo region and in the city of Rio de Janeiro.

The activity of transporting passengers by motorcycle is not regulated in both capitals.

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The City Hall of São Paulo was against the activity and informed that the Municipal Committee for Road Use (CMUV) had already notified the 99 on the suspension of trips made by motorcycles.

The City Hall says that any company that offers the service in the capital will be subject to administrative sanctions, fines and even lose the license to operate in the city.

99

THE 99on the other hand, states that the activity has legal support based on Federal Law 13,640, which allows private individual transport through applications.

99 taxi
99, on the other hand, states that the activity has legal support based on Federal Law 13.640, which allows private individual transport through applications (Image: REUTERS/Paulo Whitaker)

But without specifying which modality, 99 used a loophole in the legislation, the same argument used by Uber when, at the beginning of the year, it started offering the service in São Paulo.

THE 99 says in an official note that the regulation of transport is not up to the municipalities, but to the Union, which would prevent city halls from prohibiting the activity.

Source: Moneytimes

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