As of early March, Brazil’s House of Representatives approved amendments that allow for the regulation of rideshare applications. The amendments remove requirements that meant drivers had to own their vehicles and had to get individual permission from the municipality to drive.
Individual municipalities that choose to regulate ridesharing also do not need to issue express authorization for drivers to operate within their districts. Municipalities must follow three rules in the implementation of the law: 1) they must effectively collect municipal taxes on the service; 2) provide personal accident insurance; and 3) require drivers to register for compulsory vehicle insurance.
Any vehicle operating outside the regulations will be considered illegal according to Brazil’s new law.
Said a Cabify spokesperson in an official statement for Startupi:
“…today’s result places Brazil as the leading player in the forefront of innovation and the construction of solutions for urban mobility by establishing a balanced regulation and positively signaling for investments linked to innovation.”
Read more about rideshare issues in Brazil:
New York Times coverage (before decision)
The Battle Between Uber and Didi