Uber in Brazil – It increases unemployment says president

The president of Brazil, Dilma Rousseff, has criticised ride-sharing service Uber for increasing unemployment, adding to a chorus of labour concerns about the world’s most valuable venture-backed startup.

Rousseff said local authorities must regulate the service, which has led conventional taxi drivers to stage protests and lobby lawmakers in Brazil’s three biggest cities.

São Paulo, Rio de Janeiro and the capital, Brasília, have all moved to ban the mobile application, which lets users hail Uber drivers for rides. None of the bans have yet taken effect, as mayors weigh whether to approve the laws.

In June, French president, François Hollande, said the low-cost UberPop service should be illegal, following violent protests by Parisian taxi drivers. Uber drivers in the United States won class action status on Tuesday for litigation demanding employee benefits.

“Uber is complicated because it takes jobs away from people … it leaves taxis with less work,” Rousseff said in response to a reporter’s question. “It’s not an easy issue. It depends on the rules of each city and state, because it is not a federal government decision.”

The San Francisco-based startup declined to comment.

Chosen excerpts by Job Market Monitor. Read the whole story at Uber increases unemployment and needs regulation, says Brazil’s president | Technology | The Guardian