Mototaxi and tricycle apps gain ground in the country – 04/29/2023 – Market

From the rear it looks like a small car. From the side, the impression is that a wheel is missing. They were tricycles, or tuk-tuks, from the startup Grilo, which began transporting passengers in São Paulo in early April, in rides called by app.

The lack of definition on how to classify those vehicles confused even the City Hall. Initially, they were released as if they were cars. But, a week later, they ended up banned because the government came to understand that they were a type of motorcycle.

Blocking Cricket was the second clash between the city hall and transport apps this year. In January, the management of Ricardo Nunes (MDB) made a decree to prevent 99 and Uber from launching motorcycle taxi services in the city, and there is still debate on what to do about the topic.

Despite the vetoes in São Paulo, the motorcycle racing app model is advancing in other parts of Brazil. 99Moto, 99’s motorcycle taxi service, completed one year of operation in April and serves more than 3,000 municipalities. During the period of operation, it has already transferred R$ 600 million to partner motorcyclists and transported 1.3 million people.

99 says it sees room to expand to more cities in 2023 and increase the number of motorcycles in the locations it already serves.

Uber Moto, launched at the end of 2020, currently serves 170 Brazilian cities. The company did not reveal other data nor did it want to give an interview about the service.

Before arriving in São Paulo, Grilo had been operating in Porto Alegre since July 2020. The tricycle service has 45,000 registered users and has made 67,000 trips since launch.

There are several reasons for the advance of smaller vehicles. In addition to being able to bypass traffic and access narrow streets, motorcycle transportation is cheaper than car transportation, which can attract new audiences, especially low-income people.

“This is a service designed as an alternative for users who have been heavily impacted by the economic crisis in recent years”, says Igor Soares, director of two-wheel operations at 99.

Company data show that 66% of trips are made in peripheral neighborhoods, where app cars often do not arrive, because the streets are narrow or for fear of robberies. In Porto Alegre, 73% of 99Moto trips take place in peripheral areas. In Rio, they are 71%.

The company estimates that motorcyclists can earn 30% to 50% more money driving people than food. The same person can do both things: deliver meals at peak times, such as lunch and dinner, and passengers at other times of the day.

The advance of mototaxi apps also occurs at a time when app-based car drivers are becoming more selective in accepting rides. With the increase in the price of gasoline, some of them consider that very short trips or trips that involve taking a lot of traffic are not worth it.

For the City of São Paulo, however, the two-wheel service offers risks: on the motorcycle, the passenger also needs to have some ability to balance himself, and an oversight can lead to serious accidents. In the capital, the death rate on motorcycle trips increased by 36.4% in 2022, compared to 2019.

The companies say that the modal is safe. 99 says that 99.9% of races end without incident. “For the partner, driving carefully guarantees his own physical integrity and the maintenance of this activity, since his earnings depend on his health and the good condition of the motorcycle”, evaluates the company. Despite the veto in the capital, the service is available in the cities of Greater São Paulo.

The City of São Paulo created a working group to discuss the issue. “Thirteen meetings were held with public bodies, representatives of the motorcyclist class and interested companies. A report on the matter is being prepared”, said the Municipal Secretariat for Mobility and Traffic, in a note.

In Rio de Janeiro, the city hall also tried to block motorcycle taxi apps, but failed. 99 obtained an injunction (provisional decision) to operate the service, pending a final decision.

After the legal setback, the management of Eduardo Paes (PSD) announced the creation of its own app, Moto.Rio, to connect drivers and passengers, without charging fees. The program is in the process of registering motorcyclists and should start holding races in May.

“This story of being informal, having no respect from public authorities is over. Starting today, motorcycle taxi drivers are recognized as a transport service in the city of Rio”, said Paes, when launching the app.

The mototaxi service has been used by cariocas for years. City Hall estimates that 30,000 drivers work in the city. “In communities, mototaxi is a necessity. The car won’t pass. And when asking for the app, you don’t need to go to the stop to call”, says councilor Pedro Duarte (Novo).

The parliamentarian is against the city hall creating its own app, because he thinks that the government should prioritize spending in other areas, such as daycare centers. “Public power will not be able to compete with companies that spend millions of reais on advertising. City hall wanted to create a forced monopoly by trying to block applications”, he assesses.

App companies argue that federal law 13,640, of 2018, which regulated private transport apps, also authorizes mototaxi, as it does not make it clear that transport needs to be done by car. However, the rule determines that drivers have a category B license. [para carros] and empowers municipalities to define the characteristics of vehicles to be used for transport.

Experts in the field believe that municipalities need to be careful when regulating new mobility apps, both to ensure safety and to prevent them from ending up competing with public transport. The more people ride in individual vehicles, the more traffic there is in cities, and the more pollution.

“Regulation needs to encourage new solutions to complement areas of the city where there is not good public transport coverage, thinking about integration”, says Cristina Albuquerque, manager of urban mobility at the WRI institute.

For Valter Caldana, professor of urbanism at Mackenzie, the motorcycle taxi model is not suitable for a city the size of São Paulo at the moment, but it could be in the future if there are well-made rules, such as restricting the service to some regions, veto it on heavy traffic roads and create more lanes for motorcycles.

“We cannot be blind and pretend that there is no interest in using vehicles that are more agile in traffic. If the city hall does not regulate things, things will end up happening, but in a disorganized way”, evaluates Caldana.