How Uber drains carmaker profits in Latin America's biggest market

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Like many Uber drivers in Sao Paulo, the ride-hailing app's busiest city in...

), have received over $50 billion in subsidies from headquarters, according to data from Brazil’s central bank.“The only reason we were able to keep operating in the last few years is because our headquarters offered us loans or injected capital,” Luiz Carlos Moraes, president of Brazil’s auto industry association Anfavea, said this year.

Uber is eager to exploit the tension between rent-a-cars and automakers to push prices down as it grows its driver ranks in Brazil - its second largest market - which is largely made up of those unable to afford car ownership. “GM in Brazil has posted significant losses between 2016 and 2018, a situation that CANNOT BE REPEATED,” read the message, which was seen by Reuters.The scale of the wholesale discount to rental companies is a closely guarded secret.

Fleet sales in Brazil crossed the 1 million mark for the first time in 2018, and are already at 1.1 million this year.

 

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Is this good or bad. Lesser car ownership equals to greener? Or does it mean more cars on road at any point looking for passengers

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