São Paulo Court Orders Uber Motorcycle Taxis to be Authorized Within 48 Hours

A São Paulo court has ordered the city's government to formally authorize Uber to operate its motorcycle ride-hailing service within 48 hours. The decision, issued by Judge Patrícia Persicano Pires of the 16th Public Treasury Court, mandates the authorization and imposes a daily fine of R$ 5,000 for non-compliance. The judge rejected the Municipal Committee for Road Use (CMUV)'s refusal from July 15, noting the city's repeated resistance to previous judicial orders. This ruling follows a Supreme Federal Court (STF) decision by Justice Alexandre de Moraes, which suspended municipal insurance requirements deemed disproportionately high and an overreach of municipal authority. The STF had previously halted other municipal regulations for motorcycle ride-hailing services, citing similar concerns about municipal governments overstepping federal jurisdiction. The city government had argued that stricter insurance requirements were necessary due to the economic and social impacts of motorcycle transport, estimating annual public healthcare costs of R$ 35 million for motorcycle accident trauma and citing a social protection gap left by the extinction of the DPVAT insurance. However, Justice Moraes contended that the city's insurance demands distorted the nature of the Passenger Accident Insurance (APP) as defined by federal law and regulated by SUSEP. The STF ruling also addressed other municipal requirements, such as the mandatory red license plate and the automatic denial of licenses for unaddressed applications, deeming them inconsistent with federal regulations. The city's mayor, Ricardo Nunes, expressed regret over the STF decision, emphasizing his administration's focus on public safety and lamenting the conflict between local legislation and federal judicial rulings.