The fine against Uber and the company’s fate in the country

Uber was ordered to pay R$1 billion and the situation put the platform’s fate in check

With a decade of existence in Brazil, the Uber has been experiencing a series of twists and turns and setbacks worthy of a prime-time TV show. Globe.

This is because the largest and most popular transport app in the country and the world was condemned by the Labor Court, still in September 2023, to pay a fine of R$1 billion for collective damages.

According to the portal ThisisMoneythe argument used was the precariousness of the labor relationship with drivers registered on the platform.

At the time, the company informed that it would appeal the sentence handed down by the Labor judge. Maurício Pereira Simõesfrom the 4th Labor Court of São Paulountil all applicable resources were exhausted.

If the company lost, it would be forced to recognize the employment relationship of more than 1 million drivers, an estimated cost of over R$2.7 billion per month, which which could make the operation unfeasible in its current business model.

With this, Uber would become the largest employer in Brazil. As a comparison, JSB, leader in number of employees in the country, has 151 thousand employees.

Lots of money at stake

With so much money at stake, the Ubereven stated that he would fight to the end against the decision that the company saw as arbitrary.

In an official note, Uber informed that it would not adopt any of the measures in the sentence:

“There is evident legal uncertainty, given that only in the case involving Uber, the decision was opposite to what occurred in all judgments handed down in actions of the same content proposed by the Public Ministry of Labor against platforms, as in the cases involving Ifood, 99, Loggi and Lalamove, for example

According to the specialist in labor rights, Silvia Monteirothe existence of an employment relationship between drivers and apps is a controversial topic, but it is legitimate for workers to have social security support.

For her, however, fining Uber is not the best way to create an environment of greater balance between the company and its service providers.

What was the last service launched by Uber?

Confident in a favorable outcome for the company, at the same time, the Uber launched a new subscription program in BrazilO Uber One.

This includes trips with cashback and free delivery, nthe case of market orders, which would replace Uber Pass.

The program costs R$ 19.90 per month or R$ 198 on the annual plan, while the monthly cost of Uber Pass was R$ 24.99.

One was already present in markets such as Mexico, Germany, Spain and the USA, where the company is also adopting autonomous cars.

The program also includes free delivery on purchases over R$100 from markets, pharmacies and other specialized stores available on the app.

Uber One also provides R$15 in Uber credits if an order arrives after the estimated delivery limit, as well as access to real-time support via chat.

It is worth mentioning that, according to the Neo FeedUber reported net profit of US$1.43 billion in 2023, its first positive annual result as a public company.

For 2024, even in the face of so many obstacles, the company projected continued growth in the first quarter.

.