Tech Roundup: São Paulo created a rival for Uber, but its solution has not caught on

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Welcome to our Tech Roundup, where we bring you the biggest stories in technology and innovation in Brazil and Latin America. This week: The Uber-like app launched this year by the city of São Paulo.

São Paulo City Hall’s “Uber rival” has not really caught on

In March this year, the city of São Paulo launched Mobizap, an app-based ride-hailing service, as “one of the outcomes” of an inquiry commission from the municipal legislature into mobility applications concluded in 2022.

State of play. Despite being much cheaper than private competitors, the app has not caught on with the city’s residents. It currently has 201,000 passengers registered and more than 66,000 independent drivers. The number of Uber drivers topped the 500,000 mark in 2021.

To attract more users, Mobizap has been offering since last week 100 percent discount coupons, limited to BRL 20, to registered passengers. It also launched a progressive earnings plan for drivers; the more trips, the more earnings.

Why it matters. User experience seems to be more important than price, after all.

Changes. Last Monday, Mobizap updated its app, improving navigability items. A new travel acceptance button and a chat feature between drivers and passengers have been added. Furthermore, geolocation technology has also become more...

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.