São Paulo launches its own app to compete with Uber

Photo: Alf Ribeiro/Shutterstock

Today, the city of São Paulo launched MobizapSP, an app-based ride-hailing service that will compete directly with Uber, Didi Chuxing’s 99, and other platforms. The launch is one of the outcomes of a 2021 inquiry in the state legislature.

The platform was developed for the local government by CSX Inovação, and operates “fairer rates” for partner drivers, according to the city’s mobility and traffic secretary, Ricardo Teixeira.

MobizapSP will not have any dynamic pricing, making it clearer to drivers what they will earn.

The fee paid to the city is the same for all trips: 10.95 percent. The rest of the fare goes into the driver’s pocket. Mr. Teixeira said that other platforms take as much as 30 to 40 percent of fares.

The app, which will only work for rides within city limits, does not yet have a release date as it depends on having a base of at least 10,000 registered drivers. The registration period for these self-employed drivers started today.

São Paulo’s mobility app comes at a troubled time for the industry in Brazil, given the federal government’s desire to regulate the activity and gig workers in general, which will inevitably lead to determinations on remuneration and other working conditions for partners of these apps.

Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.