# Why did Uber Fail in Brazil?



## Maven (Feb 9, 2017)

Uber has chosen failure, perhaps due to ignorance. Brazil is a highly politicized, economically unfree society, with lots of special interests groups (from taxi drivers to car companies - they all exist in the middle of a strong web of powerful political interests). Disruptive businesses such as Uber are a threat to these interests, therefore, Uber's only chance of succeeding as a disruptive company is either/or through:

corporatism (e.g.: financing politicians, syndicates, corruption, bribes, pressure groups, astroturfing demonstrations etc.)
*and/or* by harnessing widespread public sympathy.
I don't know about Uber's investment (if any) in strategy [1] (corporatism) - which was unsuccessful (untried ?) anyways; but with regards to [2], Uber discouraged and disregarded this important strategic leg completely.

For example, Uber didn't (successfully) invest in obtaining a positive media image, public relations, think tanks, academic discussion, talks, political activism, empowerment of drivers' voices, etc. - on the contrary, the company adopted a mousy, timid role, staying out of the public debate altogether, limiting itself to issuing bland, standard PR notes saying "the company complies with this and that" one after the other, those ineffectual notes read like they've been written by a bored and terrified 16-year old PR intern with Stockholm Syndrome.

Uber missed the chance of being more vocal, of seeking "cool" Status, trying to identify its unique business model with "modernity", "change of times" etc. in Brazil. Uber left the entire public debate to be decided by socialists, taxi drivers, and their syndicates and lobbies. Maybe Uber was (badly) advised that the political environment in Brazil is like a building in flames, so they calculated they could survive by crawling with their bellies on the ground to avoid breathing the toxic smoke - lay low, move on, etc. They calculated wrong.

The sole vocal defenders of the company were the small, nascent classic liberal and libertarian movement acting, purely out of principle, without (?) any support or incentive, in their blogs, social media, etc. but that was not enough.

Meanwhile the established interests played their cards right with their professional militant force, and Uber in Brazil is now going the way of the dodo really fast.

Also read: Uber dá exemplo de como não operar no Brasil.


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## Uberyouber (Jan 16, 2017)

Everything fails in brazil...


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## SEAL Team 5 (Dec 19, 2015)

Uber failed in Brazil because even the peasant drivers in Brazil are smart enough not to drive for pennies a mile unlike here.


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## Maven (Feb 9, 2017)

Uberyouber said:


> Everything fails in brazil...


What do you have against Brazil? Even Uber thought it was a worthwhile market.

According to the CIA world-fact-book, Brazil is the 2nd largest and most popular country in the western hemisphere after the USA. Brazil is the largest economy in South America, and the eighth largest in the world. In 2015, it produced $3.166 trillion in goods and services, as measured by purchasing power parity. The awarding of the 2014 FIFA World Cup and 2016 Summer Olympic Games, the first ever to be held in South America, was seen as symbolic of the country's rise. The United States and Brazil traditionally have enjoyed robust political and economic relations.

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. Since 2008, Brazil became a net external creditor and all three of the major ratings agencies awarded investment grade status to its debt.


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## Uberyouber (Jan 16, 2017)

Meh.


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## Ca$h4 (Aug 12, 2015)

SEAL Team 5 said:


> Uber failed in Brazil because even the peasant drivers in Brazil are smart enough not to drive for pennies a mile unlike here.


ST5, This article proves your point about making pennies a mile and pennies a day. Using subsidies of over 50% of the cost of a ride to attrack Riders, Uber then floods the market with Drivers. No one makes money, including Uber. Uber Louco. Unsustainable. Both Drivers and Uber have losing hand. This is coming to an Airport near you, if Uber has its way -- Playing cards and driving hookers to their tricks.

*Losing Hand, Uber Drivers In Brazil Play Waiting Game*

*https://www.worldcrunch.com/tech-science/losing-hand-uber-drivers-in-brazil-play-waiting-game*


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## Too Many Miles (Jan 26, 2016)

Maven said:


> What do you have against Brazil? Even Uber thought it was a worthwhile market.
> 
> According to the CIA world-fact-book, Brazil is the 2nd largest and most popular country in the western hemisphere after the USA. Brazil is the largest economy in South America, and the eighth largest in the world. In 2015, it produced $3.166 trillion in goods and services, as measured by purchasing power parity. The awarding of the 2014 FIFA World Cup and 2016 Summer Olympic Games, the first ever to be held in South America, was seen as symbolic of the country's rise. The United States and Brazil traditionally have enjoyed robust political and economic relations.
> 
> Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. Since 2008, Brazil became a net external creditor and all three of the major ratings agencies awarded investment grade status to its debt.


Have you ever been there or lived there.
One thing is what the overall economic numbers show and anot her thing is how living there is. The level of corruption, crime and poverty will make you change your mind.


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## TwoFiddyMile (Mar 13, 2015)

Once Brazil offered up open sewers for olypians to compete in, I wrote their country off forever.


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## MADATW (Mar 19, 2017)

I lived there and still have friends there, there reason it fails or it's failing it's because uber drivers are dying, getting killed by taxi drivers it's like a mafia there uber is taking there money and that's how they resolve shit there, by killing so people are scared to drive for uber, wouldn't you?


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## westsidebum (Feb 7, 2015)

American workers are the only chumps that don't go lethal when their jobs or livelihoods are threatened. In other countries guys like Travis k. would need an army to protect him.


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