A look at the battle between Uber and its unlikely ally, Chinese-owned rival 99, against the São Paulo city government, which banned motorcycle taxis in 2023
The ride-hailing rivals are taking on the government of São Paulo, which banned motorcycle taxis. Bluesky: @rinachandran . LinkedIn: Gabriela Sá Pessoa Bluesky: Rina Chandran / @rinachandran : Uber has found an unlikely ally in its months-long battle against the São Paulo city government: Chinese-owned competitor 99, reports Gabriela Sá Pessoa @restofworld.org — restofworld.org/2025/sao-pau... LinkedIn: Gabriela Sá Pessoa : I contributed to Rest of World with a piece on the legal battle between the city of São Paulo and ride-hailing giants Uber and 99 over motorcycle rides. …
Context & Ripple Effects
Uber and 99 have previously faced shared operating pressures in Brazil: a 2022 account described driver shortages and fuel costs while the city-backed Taxi.Rio gained riders. The São Paulo dispute extends that contest from market conditions to the rules governing which ride formats platforms can offer.
The notable change is competitive alignment. Uber and 99, long positioned as rivals—including after 99’s funding to compete more directly with Uber—are jointly contesting a local restriction on motorcycle taxis.
First-order effects
- Uber and 99 must coordinate a legal and policy response to São Paulo’s 2023 prohibition, while the city government must defend the basis for restricting the service.
- Motorcycle-taxi drivers and prospective riders are directly exposed to the outcome because the dispute determines whether this ride category can operate through the platforms in the city.
Second-order effects
- The joint challenge gives the companies a shared interest in shaping the compliance terms for motorcycle rides, even as they continue competing for drivers and passengers in other categories.
- The case raises the value of municipal policy engagement for ride-hailing firms; it follows an earlier period in which driver and fuel-cost pressures in Brazil already made local mobility alternatives more consequential.
Third-order effects
- If similar disputes recur, ride-hailing competition will increasingly be mediated city by city through deployment rules, rather than determined solely by app scale, pricing, or driver supply.
- The alliance suggests that direct platform rivals can form issue-specific coalitions when local restrictions threaten a shared service model, though the durability of such cooperation depends on the legal outcome.
The trend: Urban mobility platforms are moving toward more localized deployment governance, with competitors sometimes aligning to contest restrictions on particular service formats.