Barcelona’s Restrictions on Taxi Licenses Struck Down by the EU Supreme Court: A Victory for App-Based Taxi Groups
In a recent ruling, the European Union (EU) supreme court struck down Barcelona’s restrictions on taxi licenses, which is a victory for app-based taxi groups like Uber and Cabify. Despite being the most hostile city to ride-hailing in Europe, Barcelona’s government decreed in 2018 that for every 30 traditional taxi licenses, only one license could be granted for a vehicle affiliated with Spain’s Cabify or the United States’ Uber. However, the European Court of Justice stated that the licensing relationship was “contrary to European law” and could have far-reaching effects across Europe.
Barcelona’s Restrictions Impose Barriers on Freedom of Establishment
The European Court of Justice ruled that Barcelona had “imposed restrictions on the exercise of the freedom of establishment,” and adding the licensing relationship that was distorted in favor of traditional taxis was contrary to European law. The court’s decision rejected the premise that the measures would protect the environment or contribute to “good management of transport, traffic, and public space.” Furthermore, the rulings challenge many restrictions imposed in recent years by regional governments in Catalonia, Valencia, Aragon, and the Balearic Islands, as two Spanish trade groups for passenger transport companies, Feneval and Unauto VTC, welcomed the court’s decision.
App-Based Taxi Groups as an Existential Threat to Traditional Taxi Drivers
App-based taxi groups like Uber and Cabify have long been seen as an existential threat to traditional taxi drivers who must pay large sums to purchase their permits. In recent years, Uber has been forced to embrace traditional taxis, bringing them into its app to gain a foothold in European markets like Barcelona that have introduced restrictions on private rental vehicles. Around 4,000 taxis are now available for hire via the Uber app in Spain. In addition, Uber indicated that taxis today make up around 10% of all journeys by its customers in Europe, the Middle East, and Africa, double the amount from a year ago.
Barcelona Under the Leadership of Ada Colau
After being defeated in mayoral elections in May, Ada Colau, known for trying to reduce car use, but criticized for perceived mismanagement and distrust of business, leads Barcelona. Despite her defeat, the restrictions imposed on app-based taxi groups, which have long been contentious, remain in place. The restrictions limit supply, increase prices, and impede the spread of ride-hail services.
Additional Insights: Mitigating Risks for Minority Taxi Drivers
While the recent ruling by the EU supreme court overturning Barcelona’s restrictions on taxi licenses is a victory for app-based taxi groups, concerns for minority taxi drivers still persist. Minority drivers are often financially disadvantaged, which puts them at a significant risk. app-based platforms consistently operate at a loss or with lower margins and are highly dependent on venture capitalists for funding. Moreover, these companies require a large capital investment to deploy the necessary technology and cover the ongoing administrative costs for driver recruitment, management, and maintenance. Therefore, offering an equitable and sustainable income for minority drivers is a delicate balancing act between app-based platforms, drivers, and regulators. One possible solution is to increase control over the transportation industry’s innovation and regulation, which can mitigate risks for drivers, regulators, and passengers.
Summary
In summary, the EU supreme court’s recent ruling overturning Barcelona’s restrictions on taxi licenses is a victory for app-based taxi groups like Uber and Cabify. The restrictions imposed on these app-based taxi groups have been contentious, with concerns for minority taxi drivers still prevalent. App-based platforms consistently operate at a loss or with lower margins, which puts minority drivers at significant risk. The recent ruling challenges many restrictions imposed in recent years by regional governments, favoring traditional taxis. However, app-based platforms’ effective regulation will ease the stress of funding and recruitment and improve the industry’s sustainability and growth.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
An EU supreme court has struck down Barcelona’s restrictions on taxi licenses in a ruling that is a victory for app-based taxi groups like Uber and Cabify.
THE Barcelona the city’s government – one of the most hostile to ride-hailing in Europe – decreed in 2018 that for every 30 traditional taxi licenses, only one license could be granted for a vehicle affiliated with Spain’s Cabify or the United States’ Uber.
But on Thursday the European Court of Justice said the licensing relationship was “contrary to European law”. It noted that a total of 15 private vehicle rental companies argued that the regulation was “solely intended to protect the interests of the taxi industry”.
The European Court of Justice’s ruling could have a far-reaching effect across Europe as it said ensuring the “economic viability” of taxi services “cannot constitute an overriding reason in the general interest” to restrict private hire fleets . Italy and Greece have justified similar tightening measures on apps like Uber as a means of protecting traditional taxi companies.
A Cabify affiliate has filed a lawsuit against Barcelona, led by the left mayor Ada Colauwhich has received international praise for trying to reduce car use, but has been criticized at home for perceived mismanagement and a distrust of business.
Colau was defeated in mayoral elections at the end of May. His pro-business rival Xavier Trias secured the largest representation on the city council, but as no candidate won an outright majority, talks about forming a government continue.
The Court of Justice said that Barcelona had “imposed restrictions on the exercise of the freedom of establishment” by applying for Barcelona-specific permits in addition to the national ones, then adding the licensing relationship which was distorted in favor of traditional taxis.
The court rejected the claim that the measures would protect the environment or contribute to “good management of transport, traffic and public space”.
Through the world Super and its rivals have long been seen as an existential threat to traditional taxi drivers, who often have to pay large sums to purchase their permits. In recent years, Uber has been forced to embrace traditional taxis, bringing them into its app to gain a foothold in European markets like Barcelona that have introduced restrictions on private rental vehicles.
Around 4,000 taxis are now available for hire via the Uber app in Spain. The company She said as of the beginning of this week taxis today make up around 10% of all journeys by its customers in Europe, the Middle East and Africa, double the amount from a year ago.
Two Spanish trade groups for passenger transport companies, Feneval and Unauto VTC, welcomed the court’s decision and said it “challenges many restrictions” on membership introduced in recent years by regional governments in Catalonia, Valencia , Aragon and the Balearic Islands.
In Catalonia the regional government, which is based in Barcelona, has imposed rules requiring passengers to wait at least 15 minutes between ordering a car and its arrival. They also set a minimum vehicle size larger than a typical race car.
When asked about the court’s ruling, Janet Sanz, one of Barcelona’s deputy mayors, did not comment on the court’s rejection of the city’s licensing requirements. Cabify declined to comment.
https://www.ft.com/content/5b16090e-f9ca-48ed-bb92-d37dd0cb4d24
—————————————————-