Competition wants less regulation for taxis compete with Uber – publico

 
         

                 

                         
                     

                 

 
 

The Competition Authority wants to loosen the regulation applied to taxis and argues that the doors of the passenger transport market are open to companies like Uber. In a preliminary report, that authority argues that the way is just to apply the “intense regulation” of taxis to new types of transport, but rather to reduce the current restrictions, so there is more competition conditions.

The document, which includes several recommendations to the Government, was released on Wednesday and will be available for public consultation until 9 September. The Competition Authority says that the appearance of transport services based on online platforms require a revision of the current rules, since “has aggravated the implications for competition of a regulatory model of taxi service that was already restrictive.”

the companies that provide mobile applications that allow you to call a car and driver are putting regulatory challenges in several countries and there are places where they were prohibited. In Portugal, in addition to Uber, which works in Porto and Lisbon (and, this summer, in the Algarve), there is also the Cabify Spanish, which has recently begun to operate in the capital.

The report states that this type of service, which “seem to be positively welcomed by consumers,” should not be prohibited. “Banish these new business models can deprive consumers of the benefits of technological innovation and the competitive pressure that these services can have on traditional taxi services. Too restrictive regulatory framework can hinder the entry of these new forms of supply, “writes the Competition Authority. The position is similar to that already expressed by the European Commission, when called on Member States not to hinder the operation of call companies “economy of sharing”.

Taxi drivers they have accused Uber unfair competition and complain about the fact that the multinational is not subject to the same rules as taxi companies. The recommendations of the Competition Authority does not seem, however, to meet what have been the claims of this sector, which has defended the prohibition of that kind of service. Contacted by PUBLIC, Florencio de Almeida, president of Antral, an association of taxi drivers, said he was unaware the document. Already Uber in a statement sent by email, was pleased, considering that “the work of the Competition Authority” falls “in the growing position of Portugal as a friend jurisdiction of mobility.”

the competition regulator, however, shows concern with regulation lies with the taxi drivers and does not extend to new competitors. “the current regulatory constraints restrict the ability of traditional taxis to react strategically to competitive pressure by new business models by placing them in a weak position before new entrants, “the report notes.

One of the recommendations is to reduce the restrictions on access to the activity. at present, taxi companies need licenses to operate, whose limited number causes them to be resold at substantial prices. Another of the points raised is the price of the fees paid by passengers, which is regulated. “Also contributing to transparency, pricing scheme agreed is the most restrictive regulatory option of competition, in that it eliminates the ability of providers to compete at the level of the ratio of price / quality, “says the document, which argues that” should, where possible, be given to the liberalization of prices ” .