The ‘Uberisation’ of Brazil’s working class

{"text":[[{"start":10.49,"text":"Rafael Antunes was a truck driver for two decades, a job that allowed him to buy a small house in the northern suburbs of Rio de Janeiro and put a daughter through a private university. But ever since he lost his job two years ago, Antunes has been driving for Uber."}],[{"start":27.44,"text":"“It depends on the month, but sometimes I earn only half of what I did before,” said the 52-year-old. “But look, a guy my age, it is the only work that I can get these days.”"}],[{"start":38.2,"text":"His experience explains much about what is happening beneath the surface in Brazil’s economy — and why President Luiz Inácio Lula da Silva’s re-election bid is struggling badly. While the world’s wealthiest countries dread the impact of AI on their labour markets, Brazil is still trying to adapt to the last technological wave, as the gig economy spreads like wildfire."}],[{"start":59.16,"text":"The economy’s headline numbers look strong under Lula, with solid growth throughout his third term and unemployment at its lowest rate since current records began in 2012, at 5.3 per cent."}],[{"start":71.44,"text":"But voters are not convinced. A September poll by Quaest showed 49 per cent believe the economy has got worse over the past year, amid a rise in household debt, and only 19 per cent think it is better."}],[{"start":null,"text":"

"}],[{"start":84.68,"text":"One explanation for the disconnect lies in the dramatic growth of Uber and delivery apps, which are acting as a form of economic safety net for many people struggling to find full-time work."}],[{"start":95.48,"text":"Almost 2mn people, mostly men, now work full-time for transport or delivery apps — around 2 per cent of the workforce — with driver numbers climbing 37 per cent in three years, according to government research. The most common reason people work for the apps is that they could not find another job, Brazil’s statistics agency found."}],[{"start":116.2,"text":"The trend is so pervasive that it has acquired a Portuguese word: the “Uberização”, or “Uberisation”, of the economy. Some workers, however, have come to question whether Lula, a former 1970s trade union boss, is best placed to manage such a transformation."}],[{"start":132.36,"text":"“Uber has become this sort of guaranteed employment programme, except in this case it is sustained by private demand . . . without it, unemployment would definitely be higher,” said Daniel Duque, a Brazilian economist who calculated that the gig economy has reduced the overall unemployment rate by about one percentage point."}],[{"start":150.68,"text":"Brazil provides perfect terrain for Uber, with huge sprawling cities and patchy public transport. It has relatively low wages and a large proportion of the workforce without formal labour contracts, while a growing number are attracted to working for themselves."}],[{"start":null,"text":""}],[{"start":null,"text":""}],[{"start":165.52,"text":"Brazilians take more Uber rides than any other nation in the world, and around 85 per cent of its adults have used it at least once. In most months, three of Uber’s top five cities are in Brazil: São Paulo, Rio and Belo Horizonte. Duque estimates that in Rio, 10 per cent of men aged 25-29 work for apps, with 7 per cent in São Paulo."}],[{"start":188.24,"text":"Some economists say the phenomenon is one element of a “vibecession”, when strong economic indicators do not match how people feel about the economy — similar to that experienced under Joe Biden in the US."}],[{"start":199.8,"text":"They argue hidden economic discontent is one reason for hard-right Senator Flávio Bolsonaro’s unexpected success in the first round of the presidential election this month, winning 47 per cent of the vote, versus Lula’s 45 per cent. He is now the favourite in the second round on October 25."}],[{"start":null,"text":""}],[{"start":216.92,"text":"The increasing reliance on the gig economy has added to “a broader sense of resentment in Brazil that has been building for some time”, said Guilherme Klein Martins, an economist at the Federal University in Rio de Janeiro."}],[{"start":229.4,"text":"More than 80 per cent of households are paying off personal debts, aggravated by Brazil’s high interest rates, he said. Brazil’s real incomes are only just recovering from a decade of economic turbulence and high inflation."}],[{"start":241.52,"text":"Uber’s explosion also reflects a broader cultural shift towards individualism and entrepreneurship that marks a step change from the desire for unionised labour prioritised by voters during most of Lula’s time in politics."}],[{"start":254.52,"text":"“30 years ago the first job was often in industry — maybe for a big company, which had active trade unions . . . but now it is likely to be Uber,” said Mansueto Almeida, a former senior finance ministry official, now chief economist at BTG Pactual."}],[{"start":271.04,"text":"The second most common reason workers cited for joining the gig economy is its flexibility. Klebson Vitorino, 23, quit his job as a printing machine operator to drive an Uber in São Paulo. He plans to go to university to study agricultural engineering but will continue working for Uber to support his studies."}],[{"start":289.96,"text":"“I’m treating it more as a pastime until I manage to achieve my goals,” he said."}],[{"start":295.48,"text":"Carlos Ribeiro, who has been a driver for the Uber Black service in São Paulo for the last two years, said he now has more control over his life."}],[{"start":null,"text":""}],[{"start":null,"text":""}],[{"start":303.44,"text":"“If I have to take my kids to the doctor or something like that, I can be there every time,” he said."}],[{"start":309.96,"text":"But Leandro Cruz, the head of an app drivers’ union in São Paulo, said many drivers start out excited, then find they make less and less money as problems mount with their car, either after it breaks down or they have accidents. “Many end up having to work seven days a week to keep up,” he says."}],[{"start":326.96,"text":"People working on digital apps used to earn more than the average private sector wage, but the latest data showed salaries are now similar, while the gig economy’s average workweek was 5.4 hours longer."}],[{"start":338.8,"text":"Uber said its platform has had a positive impact, increasing worker income and reducing unemployment. It is investing R$2bn in technology in Brazil."}],[{"start":349.12,"text":"The ruling Workers’ Party, which Lula founded after leading a trade union in São Paulo, now risks losing its connection with younger members of the working class, some analysts say. He has aimed to address the issue this year, launching a credit line of up to R$30bn ($6bn) for drivers to buy their own vehicles in a bid to court gig-economy workers."}],[{"start":369.72,"text":"“When we produce a policy that allows an Uber driver to have his own car . . . that is the sort of thing only the state can do,” he said."}],[{"start":380.04,"text":"Nielson Costa, a 37-year-old from São Paulo who has been an Uber driver for three years, did not vote in the first round and has not been persuaded by the government’s new measures."}],[{"start":387.18,"text":"“If I didn’t have debts, I wouldn’t need the government’s help,” he said. “The government does not really care about app drivers.”"}],[{"start":395.74,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1792491945_8879.mp3"}