Brazil debates micro-mobility as scooters take over streets of big cities

Strolling around São Paulo’s financial district has become something of a risky business is the past few months. To avoid the eternal traffic jams, executives have adopted scooters as their go-to means of transportation, riding alongside pedestrians, cars, and bicycles. As the first reports of accidents surfaced, the municipal government intervened, followed by Rio de Janeiro’s authorities, rekindling the debate about mobility and regulations in Brazil.

Electric scooters arrived as a much-needed option of micro-mobility in places such as the crowded Brazilian capitals. The model is user-friendly: most of the companies operate through apps and all you need is a smartphone to unlock the scooters. As the machines are dockless, it is easy to leave the scooters anywhere you want, without worrying about parking. Since they are electric, they’re environmentally friendly, helping air quality.

Also, riding on the sidewalk is much faster than facing traffic jams, and the system is relatively cheap. In São Paulo, where a bus ticket costs BRL 4.30, you can rent a scooter through Yellow—the Brazilian startup leading the local market—for BRL 3 and an additional BRL 0.50 per minute. In always crowded financial centers, there are rarely easy parking spaces, but the roads are flat and easy to walk on, making them fertile soil for electric scooters.

It’s no wonder the local market became so profitable. Yellow, which also operates a bike-sharing model, has just announced a merger with Mexican startup Grin, after receiving a USD 150 million capital injection from investors. The combined company, Grow, will offer 135,000 vehicles in 17 cities,...