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Brazil's Biggest City Wants To Charge Fees For Uber Rides (engadget.com)

An anonymous reader sends word that Sao Paulo's city hall has proposed levying fees on Uber to operate in the city. Engadget reports: "Many cities try to limit or ban ridesharing services like Uber, but Sao Paulo is trying an uncommon strategy to keep the companies in check: skimming a little off the top. The major Brazilian city has proposed a requirement these services have to buy government credits to cover their distance traveled, with rates changing based on when and where the trip takes place. App makers would also have to support a service that picks up multiple passengers headed in the same direction, although that won't be hard when options like UberPool already exist."

38 of 77 comments (clear)

  1. Sounds like a good idea by WillAffleckUW · · Score: 2, Insightful

    And if Uber doesn't pay the fees, jail the executives.

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    1. Re:Sounds like a good idea by amiga3D · · Score: 5, Insightful

      They tax everyone else, why should Uber get a free ride?

    2. Re:Sounds like a good idea by vivian · · Score: 3, Insightful

      The Uber drivers are already paying registration fees, and fuel taxes, which are proportional to mileage, not to mention income tax just like everyone else on the revenue they earn - and that revenue is 100% trackable because it's all electronic - unlike cash - so there's no tax dodging, which can happen with directly negotiated taxi rides. (eg. I'll give you $30 bucks to take me down town - no meter)

      In addition Uber (and taxis) helps support the entertainment and tourism industry - the main reason to get a taxi is because you can't drive - either because you are cashed up but don't have a car (eg tourist) or because you want to enjoy a few drinks at the bar / restaurant / friend's party, and are responsibly choosing not to drink and drive.
        In the latter two cases, if you drove yourself you would be spending less on alcohol resulting in overall lower income collected by the restaurant and lower tax revenue collected by the state. Taxi services and Uber actually allow the state to collect greater revenue just by existing, than if they didn't - and the restaurant / bar / entertainment industry should be rallying behind them to make it more affordable for people to get to their businesses for a nig

    3. Re:Sounds like a good idea by fluffernutter · · Score: 1

      I'm pretty sure there is more than one taxi company.

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    4. Re:Sounds like a good idea by Anonymous Coward · · Score: 1

      The Republicans in Brazil. I wasn't aware there were any Republicans here. /. has gone full on libtard.

    5. Re: Sounds like a good idea by fluffernutter · · Score: 1

      Sure but not the wealthiest people that hate us the most. These people aren't worth our time, really.

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    6. Re:Sounds like a good idea by Anonymous Coward · · Score: 1

      I'm not sure why you got modded down. Maybe a mod whose daddy drives a cab?

    7. Re:Sounds like a good idea by ganjadude · · Score: 1

      and the cost of uber goes up to cover the fees. so who wins?

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    8. Re:Sounds like a good idea by ganjadude · · Score: 2

      no... its a simple concept called supply and demand

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    9. Re:Sounds like a good idea by Mitreya · · Score: 1

      The Uber drivers are already paying registration fees, and fuel taxes, which are proportional to mileage

      The Uber riders already pay a "safe rides" fee and, in Chicago, a "Chicago" fee and an "Airport or Navy Pier destination" fee, the latter one being $5.
      I think taxes will be levied until the price is the same for both cabs and Uber rides. Airport cost (Chicago downtown to Midway airport) went from ~$18 to ~$25 in the last few months.

    10. Re: Sounds like a good idea by Midnight+Thunder · · Score: 1

      Taxes are always used by the Republicans as a weapon against the working poor.

      But never understood why the poor vote for them?

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    11. Re: Sounds like a good idea by Teancum · · Score: 1

      I didn't know that the Republican Party had any sort of significant influence upon the government of Sao Paulo. The "right wing" political party of Brazil is the PMDB, and has philosophies more or less along the lines of the U.S. Democratic Party.

      PT (the "Worker's Party" or Partido dos Trabalhadores) might make such accusations about PMDB though.

    12. Re:Sounds like a good idea by Teancum · · Score: 1

      after the war.

      After what war? The war between Brazil and Bolivia?

  2. That word... by pushing-robot · · Score: 4, Funny

    Many cities try to limit or ban ridesharing services like Uber, but Sao Paulo is trying an uncommon strategy to keep the companies in check: skimming a little off the top.

    If you think that's uncommon, you must not know any governments.

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    1. Re:That word... by rmdingler · · Score: 3, Insightful

      Legalization of a thing previously deemed unsavory or immoral is made proportionately more likely by the ability it has to fill government coffers.

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    2. Re:That word... by drinkypoo · · Score: 1

      If you think that's uncommon, you must not know any governments.

      Or especially Brazil. World Cup, Olympics, they are pretty much the world poster child for corruption now. They're fighting with Greece for the top spot.

      --
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    3. Re:That word... by Triklyn · · Score: 1

      i don't think of greece when i think corruption, i think of sub-saharan africa and indonesia/india. when i think of greece i think "greed and incompetence"

  3. Sharing? by Anonymous Coward · · Score: 3, Insightful

    ridesharing services like Uber

    What's being shared exactly? There is no sharing. People pay money for the services rendered by taxi companies like Uber.

  4. Same as medallion system by fluffernutter · · Score: 1

    So basically the city wants something like the medallion system, but one that benefits them directly instead of making it a piece of property to be traded.

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    1. Re:Same as medallion system by dbIII · · Score: 2

      Initially a medallion system is a source of funds to a government, just not initially at as high a price as they get when demand vastly outstrips supply. When the price is high that's a sign that the people with the granted right to run taxis are using the government to keep out competition by having a high cost of entry - so broken by a few definitions, especially if those who are the only players in the closed market don't bother to supply at certain times and places.
      It's an very old sort of system of money for exclusive rights that King John got a bit of criticism for and has been a revenue stream and way to establish closed markets since at least then.

      However it's not black and white on this taxi issue. While the laws Uber are deliberately breaking may be bad ones there's still nothing all that wonderful with people doing piecework in their own cars at low returns.

    2. Re:Same as medallion system by fluffernutter · · Score: 1

      Right.. the price of medallions skyrocket because they're attached to something real... the capacity of the streets to bear additional cars. They reflect not only the cost of wear and tear, but the inconvenience other drivers must face due to traffic congestion. Before the medallions people couldn't even drive up to hotels because they were crowded by taxis. So because roads don't have unlimited capacity, something has to give. Personally I would rather taxi's pay exorbitant prices then have myself forced out of the roads because others are filling them.

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  5. Sounds taxing by penguinoid · · Score: 1

    Incidentally, what's the difference between a tax and a fee?

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    1. Re:Sounds taxing by rmdingler · · Score: 1

      Incidentally, what's the difference between a tax and a fee?

      Essentially, the former scores better in Scrabble.

      New Hampshire has no sales tax nor income tax, Texas has no income tax, and gawd help folks who live in Taxachusetts.

      But. They all have a pretty good idea how much dinero they need to run the State of things next year, and they get it from the same folks, year after year.

      The rest is just semantics.

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  6. Paulistano here. by Anonymous Coward · · Score: 2, Interesting

    The guy is supposedly a left-wing one (from the Laborers' Party - "PT"). He's young and has been doing an unconventional government -- he installed a lot of bike lanes (ciclovias) in an attempt to make people use bikes, but we lack the culture to use them these days and São Paulo has a harsh relief -- in some places it could be negotiated with an electric bike, but these are costly and too irresistible for thieves.

    All in all, I don't think he's the worse we had, but some people simply hate his party for the insanely expensive and numerous cases of corruption (although it seems he's not involved).

    He also reduced our city max speed to 50kmph mostly everywhere (that's about 31mph). Mind you, this is an international tendence and we have such terrible traffic jams that make us go even slower. But people find such speed too slow. Again, from what I've read here and elsewhere going slower probably reduces jams. Then again Brazilians simply love to speed. One of the alleged advantages is a reduction in accidents.

    Now, given this panorama, I guess he would allow Uber without any tax whatsoever. And this is what has happened till now.

    But conventional taxi drivers would rather start a revolution than have that. There's been a lot of protests and I guess the mayor is trying to come up with some kind of compromise like "See, they're paying, too!" Oh, well...

  7. Expect high taxes by Anonymous Coward · · Score: 1

    Unfortunatelly things here in Brazil are not decided by logic, but by whoever pay higher bribes to politicians. In my city, Belo Horizonte (a big capital), there's a law project which completely bans apps like Uber. It has been approved and our hope now is that the ultra-corrupt mayor vetoes it. What's worrying about São Paulo's project will be the tax rate, since everything here is overtaxed. For example, while the crude oil barrel has dropped from US$ 100,00 to 40,00 in two years, the gas price has doubled. Due to no-taxes, Uber fares are approximately a third of taxi's, I wouldn't be surprised if government decides to charge something like 40% of Uber rides.

  8. Re:Don't existing taxes cover the things uber does by guruevi · · Score: 1

    Not really. The taxes for passenger vehicles are based on the average distance you do in normal circumstances. If you operate your personal car as a commercial vehicle or taxi then you do a LOT more distance and pollute and break down roads accordingly. You also set up a number of risks therefore taxing the first responder and similar infrastructure harder.

    That's why in the US at least, if you lease/rent/insure or take out a loan for a car you cannot operate it as a taxi. It also voids most extended warranties as they do not want to cover the maintenance for the 100,000km/year a taxi vehicle may do.

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  9. You heard it here, folks. by Anonymous Coward · · Score: 1

    In addition Uber (and taxis) helps support the entertainment and tourism industry

    And every company helps support the economy at large.

    No more corporate taxes for anyone, woooooooo.

  10. Re:Ah yes, the socialist answer to every problem.. by ganjadude · · Score: 1

    there were no roads before the income tax? i could have sworn the USA had roads prior to the 1930s.....

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  11. Re:Don't existing taxes cover the things uber does by schwit1 · · Score: 1

    Yes, it's the fuel tax, aka a use tax or consumption tax. But this is not about consumption - it's about keeping another buggy-whip industry alive.

  12. Can we get rid of the "ridesharing" falsehood? by dbIII · · Score: 3, Insightful

    One very creepy business practice of Uber is to use the word "ridesharing" to pretend it is casual hitch-hiking of people already going in a direction instead of the taxi service done as piecework that it really is. There are political reasons for this falsehood to evade laws and fees, perhaps unjust laws and fees, but even if they are that is no reason for us to pretend that they are "ridesharing" instead of how it actually operates. Why should we be propagating PR bullshit instead of discussing it in terms of reality? It's like calling a mail order scam a religion.

    1. Re:Can we get rid of the "ridesharing" falsehood? by drinkypoo · · Score: 1

      Why should we be propagating PR bullshit instead of discussing it in terms of reality?

      You mean like when we talk about Taxi Medallion (or other tracking or allotment) systems as if they do any of the things they claim to do?

      Uber and Lyft have to call themselves ridesharing services because the state calls hiring a car something which it has complete control over, which it abuses. It is unreasonable to place additional restrictions on car use when it is done for money. If it is not safe to drive someone for money, it is not safe to drive someone for free. People who drive more miles already have to pay more insurance. People who use more fuel are already paying more taxes. People who drive more miles already have to get more inspections, at least in countries with sensible requirements to begin with (so perhaps I should say km.) People who make more money pay more taxes. There is no legitimate justification for levying any additional fees on anyone because they are collecting money for driving people. The only potentially legitimate requirement is a background check. State-sponsored background checks do none of the things they are claimed to do (like prevent assault or rape by a taxi driver) and Uber also does background checks; if they are inadequate that does not differentiate them from those performed by the state. So where in reality does this ongoing assault on Uber serve The People? Answer, it does the opposite. Uber is sleazy, but we should still want what they are fighting for.

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    2. Re:Can we get rid of the "ridesharing" falsehood? by drinkypoo · · Score: 1

      I don't think that the medallion system really solves any of those. But it does help with traffic congestion. How can that be handled with Uber/Lyft?

      The only way a medallion system can "help" with traffic congestion is by reducing the amount of available transportation to levels that do not serve the public. If you want to help with traffic congestion, then put in public transportation which can carry more passengers.

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    3. Re:Can we get rid of the "ridesharing" falsehood? by dave420 · · Score: 1

      You are making two massive mistakes:

      1. You assume all taxis are as shit as those in the US
      2. You assume no limits to the number of taxis is a good thing

    4. Re:Can we get rid of the "ridesharing" falsehood? by BadgerRush · · Score: 1

      Calling Uber a "taxi" service is just as wrong as calling it "ridesharing" (OK, maybe a little less wrong, but still very wrong). The more correct term for Uber would be a "chauffeur" service.

  13. Re:Ah yes, the socialist answer to every problem.. by drinkypoo · · Score: 1

    there were no roads before the income tax? i could have sworn the USA had roads prior to the 1930s.....

    While it did, they were so shit that driving cross-country was an epic.

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  14. Re:Don't existing taxes cover the things uber does by drinkypoo · · Score: 1, Insightful

    If you operate your personal car as a commercial vehicle or taxi then you do a LOT more distance and pollute and break down roads accordingly.

    Bullshit. Virtually all road damage is done by heavy trucks, or by nature (weather, tree roots, inadequate road beds) and practically none of it is done by passenger vehicles. The only time passenger vehicles cause perceptible damage is when they hit a pothole, but they don't make potholes. Inadequate road beds do that. Tree roots and animals in the inadequate road beds do that. If you think cars are damaging a road, what's actually happening is that you paid for a shitty road. You were robbed by your city, which probably knowingly paid for inferior roads while someone got a kickback.

    You also set up a number of risks therefore taxing the first responder and similar infrastructure harder.

    But that's true whether you collect money or not. By that logic, anyone who transports passengers and drives a lot of miles should have to pay more. It should not matter whether they are collecting money for the privilege.

    It also voids most extended warranties as they do not want to cover the maintenance for the 100,000km/year a taxi vehicle may do.

    Warranties already run out in a number of years or units of distance, whichever is shorter. Just like all the other "problems" which are allegedly "caused" by taxi service in particular (which are actually caused more by people driving themselves) this is another non-problem that is already covered by existing systems, and nothing special need be done for hire vehicles.

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  15. Doesn't seem all that unusual to me by JudgeFurious · · Score: 1

    "City Government in South American Country Wants a Piece of The Action"? So they're saying everything is working as usual in Brazil?

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  16. Putting words in my mouth by dbIII · · Score: 1

    You mean like when we talk about Taxi Medallion

    Obviously not, there's nothing at all about that in the above post.
    Who taught you that bad habit of using "You mean like" to put words in other people's mouths?