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Even though this is still an ongoing legal battle, laws in each country are very different and might cause Uber business to be viable in some and not others. In

by irae 6y ago

Even though this is still an ongoing legal battle, laws in each country are very different and might cause Uber business to be viable in some and not others. In Brazil labour laws are extreemly harsh and many say an employee costs between 50% and 150% more as compared to employment costs in other countries[1]. Also the social impact is different in different countries. Brazil is the only developing country in the list above. I live in São Paulo, and I can say before Uber, taxi cabs were a thing for rich people. Uber and it's competitors drove costs so low, poor people can now aford rides. I didn't find Sao Paulo stats, but in Rio, app drivers are 3x the number of cab drivers[2]. Uber estimates 1.9mi users might not be able to afford anymore if the law passes, amongst many other claims [3]. [1]: I won't pick specific sources, search 'custo brazil' if you are interested [2]: https://oglobo.globo.com/rio/pesquisa-mostra-que-aplicativos-ja-transportam-triplo-dos-passageiros-de-taxis-23912389 https://oglobo.globo.com/rio/pesquisa-mostra-que-aplicativos... [3]: https://www.uol.com.br/tilt/noticias/redacao/2020/03/09/nova-lei-nesta-semana-pode-afetar-apps-como-uber-em-sp-o-que-esta-em-jogo.htm https://www.uol.com.br/tilt/noticias/redacao/2020/03/09/nova...

toomuchtodo 6y ago
You can’t argue consumer surplus as a benefit (“Everyone gets Uber now!” Versus taxis for just the rich) if you’re avoiding employment costs. Taxis were for rich people because they could afford the fully loaded costs. If the financial model is unsustainable because of employment law and the costs required by the law, the business is fundamentally flawed and unsustainable.
- username90 6y ago
  Uber works thanks to greed. When a driver knows he earns as much as he gets customers he will try to optimize his driving patterns. This cuts down a lot of overhead you otherwise need managing when, where and who should be able to drive for money. Making people employees with minimum hourly wages ruins this dynamic and suddenly Uber would need to add that extra overhead as well.
  - josinalvo 6y ago
    > Making people employees with minimum hourly wages ruins this dynamic This is the most important question! Is there a way, inside the brazilian legislation, to give them full workers rights but keeping the pricing per km rather than hour? There really should be...
EL_Loco 6y ago
Not only that, but in São Paulo a taxi license was in some places worth a lot of money. License owners would typically rent it, and would illegally hoard them, giving them to family members who never drove a taxi, just so he could have more and rent them out. Legally, one person could only own one. Then there are the taxi companies, which also hoarded hundreds of licenses, mostly through corrupt means.

by irae 6y ago

toomuchtodo 6y ago

You can’t argue consumer surplus as a benefit (“Everyone gets Uber now!” Versus taxis for just the rich) if you’re avoiding employment costs. Taxis were for rich people because they could afford the fully loaded costs. If the financial model is unsustainable because of employment law and the costs required by the law, the business is fundamentally flawed and unsustainable.

username90 6y ago
Uber works thanks to greed. When a driver knows he earns as much as he gets customers he will try to optimize his driving patterns. This cuts down a lot of overhead you otherwise need managing when, where and who should be able to drive for money. Making people employees with minimum hourly wages ruins this dynamic and suddenly Uber would need to add that extra overhead as well.
- josinalvo 6y ago
  > Making people employees with minimum hourly wages ruins this dynamic This is the most important question! Is there a way, inside the brazilian legislation, to give them full workers rights but keeping the pricing per km rather than hour? There really should be...

EL_Loco 6y ago

Not only that, but in São Paulo a taxi license was in some places worth a lot of money. License owners would typically rent it, and would illegally hoard them, giving them to family members who never drove a taxi, just so he could have more and rent them out. Legally, one person could only own one. Then there are the taxi companies, which also hoarded hundreds of licenses, mostly through corrupt means.