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The end of traditional public transport? Uber will offer cheaper bus transport to capture the R$30 BILLION market in Brazil

Written by Alisson Ficher
Published 13/01/2025 às 18:55
Uber is betting on Brazilian road transport with Shuttle, facing legal challenges to compete in a billion-dollar market worth R$30 billion.
Uber is betting on Brazilian road transport with Shuttle, facing legal challenges to compete in a billion-dollar market worth R$30 billion.

With the promise of transforming the road transport market, Uber launched Shuttle in Brazil. The service offers cheaper intercity transport, but is already facing investigations for alleged illegality. Will this service revolutionize mobility or is it doomed to failure? Discover all the details and impacts on the transport sector!

Have you ever imagined a revolution in Services public, where the agility and convenience of applications invade the road sector?

Well, Uber Shuttle has arrived to compete in the billion-dollar intercity charter market in Brazil, promising to offer cheaper and more practical travel, but is already facing resistance and investigations from the authorities.

The service, which promises to change the dynamics of transportation between large cities, has generated controversy and questions about its regularity.

Uber Shuttle, a modality launched by Uber, aims to connect passengers between Guarulhos and São Paulo.

Announced on January 8, 2025, the service is inspired by an initiative created in Egypt in 2019 and which is now present in more than 30 countries.

The idea is clear: to compete in a market estimated at R$30 billion and compete with companies such as the Brazilian Buser, the German FlixBus and the French BlaBlaCar.

In Brazil, Shuttle offers five fixed routes between neighborhoods in Guarulhos and regions of São Paulo, with prices ranging from R$30 to R$40 per trip.

How Uber Shuttle Works

Passengers interested in the service must purchase packages with a minimum of two trips within a 30-day period.

The purchase is made directly in the Uber app, where it is also possible to track the route in real time..

Boarding validation occurs via QR code or PIN.

Uber has partnered with licensed companies, such as Viação Mimo, to operate the service, using vehicles with capacity for up to 49 passengers.

Among the routes currently available, the following stand out:

  1. Bonsucesso > Itaim Bibi > Jurubatuba
  2. Adriana Garden > Itaim Bibi > Jurubatuba
  3. Rio de Janeiro Village > Itaim Bibi > Jurubatuba
  4. Taboao > Itaim Bibi > Jurubatuba
  5. Sao Joao > Itaim Bibi > Jurubatuba

It is worth noting that, to date, none of the lines offered by Shuttle pass through Guarulhos International Airport.

Controversy and supervision

Despite Uber's optimistic speech, the service is already subject to inspection by Artesp (Transport Regulatory Agency in the State of São Paulo) and the Metropolitan Urban Transport Company (the EMT).

According to these bodies, the Shuttle's operating model does not comply with current legislation.

According to Artesp, Viação Mimo is registered for chartering, but the practice of charging individually for seats characterizes a regular public transport service, which is not permitted by chartering rules.

EMTU highlighted that the service offered does not fall within the categories provided for by State Decrees No. 19.835/1982 and No. 29.912/1989, which regulate continuous and occasional chartering.

During an operation carried out on January 10, 2025, ten buses were inspected, two of them seized and taken to a yard.

According to EMTU, new inspections will be carried out, which may result in fines or even the seizure of vehicles if the service continues to operate without authorization.

Defending Uber and Mimo

In response to criticism, both Uber and Mimo defended the legality of the service, claiming that it follows the model of regulated chartering.

Uber said the bookings are not individual but rather made through packages, which meets legal requirements..

In a statement, the company highlighted that the model is similar to that used by other companies in the sector, but with a technological difference that allows seats to be reserved via the app.

In turn, Mimo stated that its “executive charter” model is in accordance with Artesp and EMTU regulations.

The company reinforced that trips are charged in packages or monthly fees, and not for individual tickets.

If irregularities are confirmed, Mimo has committed to immediately halting operations..

Mimo also clarified that its target audience is passengers who currently use private cars or individual transportation services for daily commutes, such as commuting to work or university. According to the company, there is no direct competition with regular intercity lines.

The future of ride-hailing

With the launch of Uber Shuttle, Uber seeks to expand its operations in the Brazil, entering a segment that moves billions annually.

However, clashes with regulatory bodies could pose a significant obstacle to the service.

While the legal issues are not resolved, the company remains in controversial territory, dividing opinions among passengers and authorities..

It remains to be seen whether the model proposed by Uber will be able to survive regulatory demands or whether it will be yet another chapter of tension between technological innovation and traditional legislation.

Do you believe that Uber Shuttle has the potential to transform Brazilian public transportation? Leave your opinion in the comments!

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Keyte Saraiva
Keyte Saraiva
14/01/2025 02:05

This idea would be sensational, because in Belo Horizonte and metropolitan areas we pay an absurd amount for collective tickets and without the minimum comfort. Not to mention the delay of the buses.

Nardo
Nardo
14/01/2025 07:40

I hope so because public transport is a 💩
Not counting the fare value

Eugene Veiga
Eugene Veiga
15/01/2025 06:00

The Uber Shuttle idea is good, it brings innovation to short-distance intercity transportation in the metropolitan region of São Paulo, but there are rules established by regulatory agencies that need to be observed, discussed and changed to benefit the user, with a reduction in their expenses and travel times. There is a lot to come. Let's keep following.

Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines, stints on broadcast TV channels and over 12 online publications. Specialist in politics, jobs, economics, courses, among other topics. Professional registration: 0087134/SP. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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