FGV experts comment on Uber and the controversy among taxi drivers

Marília Maciel, FGV researcher, explains that Uber?s case is more complex than a simple dispute between the company and the interests of taxi drivers.
Institucional
24 Julho 2015

An App to facilitate the movement of people and that seems to have an infinite potential for controversy. That?s Uber, a success among passengers in major cities worldwide, elected the number one enemy of taxi drivers. In Brazil, it is no different. Under the criticism of this working category in São Paulo and Brasília in April, Uber?s competition has generated dissatisfaction among taxi drivers, who went to the streets in Belo Horizonte and Rio de Janeiro on Friday, July 24.Uber has been the target of lawsuits and was even banned in some countries. Spain, Germany and France are among the main examples. The authorities of these countries have to answer charges related, in general, to how drivers are paid, the models to charge passengers, the safety and responsibility of the platform, and the competition with taxi drivers, since Uber?s drivers do not bear the licensing costs required to act as public transportation for private use.Marília Maciel, managing researcher at the Center for Technology and Society (CTS) of FGV?s Rio de Janeiro Law School (FGV Direito Rio), explains that Uber?s case is more complex than a simple dispute between the company and the interests of taxi drivers. For her, other stakeholders need to assess the case, such as users of regular taxis and Uber, passengers from other public transport modes, the government and, especially, the drivers who use the platform.?We cannot discuss the case only from a legal or economic perspective. Certain questionings, such as whether Uber is illegal or not, whether it should be regulated or not, and whether it is unfair competition, may have different answers depending on the analysis angle. This happens because we are facing a change of social and economic paradigm, which is based on technological innovation. The two major background issues to be discussed are: what technology transformations such as Uber bring to our society and, once these transformations are understood, how we would like to deal with them?, asked the researcher.To prevent the use of Uber in Brazil, the municipalities of Rio and São Paulo are supported by Law 12,468/2011, which determines the use of motor vehicles to provide paid public transportation of passengers a prerogative of professional taxi drivers. For Pedro Augusto Francisco, also a researcher at CTS, it is natural that the emergence of a new competitor, that starts changing the dynamics of a market, causes negative reactions from those who already work with it.?New business models force the pre-existing ones to adapt and modernize not to lose their users. This competition is positive. However, they should not dismiss the complaints from taxi drivers. If the service provided by a company fits within a regulated category, then it is not legally legitimate for it to act without complying with the rules of the category. The question of legitimacy; however, must come after the discussion of how we will classify Uber. We need to check if the company in fact provides a public service and, if so, how should we regulate it, considering that their business model seems to be different from the transport services offered to date. Perhaps Uber is not even a mere taxi service, but it is certainly not only a company that connects users with private drivers?, he argued.

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