Brazil's lower house approves bill to regulate cab-hailing apps

This bill, which will allow local government to institute laws, now awaits clearance from the President

Brazil's lower house of Congress has approved a law to regulate ride-hailing apps such as Uber, Cabify and 99, allowing local governments to institute rules for these services within the regulations of the National Traffic Code.

The bill, now awaiting presidential approval, was passed on Wednesday night after nearly two years of debate in the Congress, and aims to regulate cab-hailing services operating in the country, reports Efe news.

"Individual private paid transport which does not follow the requirements of the future law and municipal regulations will be considered illegal," the Chamber of Deputies said in a statement.

Local governments will have to ensure drivers who use these apps pay relevant taxes and hire special insurance for passengers, apart from enrolling themselves in the country's social security system.

Certain requirements in the bill will, however, be in force throughout the country, including the age of the vehicle, and a driving license that would specify if the driver owned the car or was a paid employee.

The Congress also ratified an earlier decision by the Senate to remove the requirement that ride-hailing services must have a red license plate and that the driver must own the car.