Uber to remain in business after amended bill in Brazil

Brazil's Senate approved a weaker version of a hotly disputed bill to regulate car-hailing services like Uber Technologies Inc [UBER.UL] on Tuesday after the U.S. company's chief executive warned it could make its business unworkable in the country.

Dara Khosrowshahi, who held talks with senior Brazilian officials in the capital Brasilia, had called on senators to remove rules in proposed legislation that would require Uber drivers to be licensed with their local municipalities, like taxis, and to use their own cars.

Uber has said that, if the bill was approved in its original form, it would undermine its ability to operate in Brazil, its second-biggest market, by making it too expensive and bureaucratic for many of its drivers.

That would harm the livelihoods of the 500,000 people driving for the company in Latin America's largest economy, according to Uber.

Following an appeal by Khosrowshahi for greater dialogue and more sensible regulation, senators agreed to amendments dropping requirements that drivers own their cars and have the same red number plates used by public transport vehicles like taxis.

However, lawmakers kept rules that make drivers subject to local city authorities for licensing, taxes and other rules. The bill must return to the lower house for final approval.

The regulatory crackdown in Brazil comes after authorities in London decided not to renew Uber's operating license last month and highlights the legal threats mounting against its fast-growing foreign operations.

Khosrowshahi struck a conciliatory tone in an interview with a Brazilian newspaper, suggesting Uber was open to finding compromise with local lawmakers, a break in style with his pugnacious predecessor, Travis Kalanick.

"In the past we were a bit aggressive, but we have to understand that it's not just about what we want and reach compromises," Khosrowshahi told O Estado de S. Paulo. "We are not against regulation. Regulating services like Uber is totally appropriate."

However, after talks with Finance Minister Henrique Meirelles, the executive said the future of the ride-hailing app in Brazil depended on the decisions made in Brasilia.