Ride-hailing app bill still pleases no one

A House public hearing on Wednesday showed that the government-sponsored bill proposing new labor protections for drivers of ride-hailing apps such as Uber still faces heavy resistance from both sides of the debate — that is, both from representatives of labor rights and rival companies.

President Luiz Inácio Lula da Silva sent the bill to Congress in early March. Uber supports the proposal, saying in a statement that the draft is “an important milestone” to expand labor protections “without compromising the flexibility and autonomy inherent” to the app. Silvia Penna, Uber’s director-general in Brazil, and Fernando Paes, head of public policy and government affairs at rival app 99, both attended a ceremony at the presidential palace.

The bill proposes a minimum hourly wage of BRL 32.10 (USD 6.22) for drivers, with the lion’s share accounting for work-related expenses such as fuel and internet service, and a remaining BRL 8.03 for the driver’s revenue. That is actually higher than what the current federal minimum wage pays per hour: BRL 6.42.

The proposed regulation also forces both companies and drivers to make social security contributions. 

The bill is also the first major initiative of the Lula administration under the so-called Partnership for Workers’ Rights, launched alongside U.S. President Joe Biden in September 2023, aimed primarily at...