EUROPEAN COMMISSION: “The rules which currently apply to taxis and PHV should be scrutinised”

Rules currently applying to Europe‘s taxis and private hire sector ‘should be scrutinised’ says European Commission spokesperson.

The European Commission’s Legal Officer in DG MOVE, Dr. Anja Kaeller, told attendees at the delayed international UITP Taxi and Ride-hailing Digital Conference, that the commission also stood for the ‘fair opportunities for all existing and new market players’ and welcomes ‘innovative services and strongly support digitalisation’.

The key points were made during an interesting opening speech at the UITP Taxi and Ride-hailing Digital Conference which brought together leading names in the industry over a two-day conference between 2-3 December 2020.

Mohamed Mezghani, Secretary General of UITP (International Association of Public Transport), also spoke summing up the impact of the pandemic in the opening session of the conference.

Dr. Kaeller said: “Although there was no need for such confirmation, the Coronavirus crisis has confirmed something that is very clear to everyone who is now listening and certainly to me: that passenger transport-on-demand is a very important topic which concerns many EU citizens directly.

“Due to the Coronavirus crisis, transport providers, especially passenger transport providers, have found themselves unexpectedly in extreme economic difficulties: lockdowns, travel restrictions, cancellation of business travel, halt of nightlife. Countries are struggling to support and keep transport structures and businesses alive.

Image credit: UITP Taxi and Ride-Hailing Digital Conference

“All those people working on the ground providing transport for goods and passengers during the worst times of the crisis deserve our respect and gratitude.

“There will be a life after the crisis, yet we do not know when it will come and what the post-Corona-normal will look like. For example: Will tourism and business travel resume just as before the crisis?

“Still, we all have to think about this future – and we have to prepare.

“In this regard, I would like to point out that, on 9 December, the European Commission will present its Smart and Sustainable Mobility Strategy. This Strategy will outline the Commission’s approach to mobility and transport for the next decade. Greening and digitalisation of road transport, including in urban areas, will certainly be at the core of the transport developments.

“Regarding urban mobility, the Coronavirus crisis has an enormous negative impact on public transport. People now avoid public transport for risk of contamination with the virus. They choose modes of transport which allow them to socially (or rather physically) distance. This has the following consequences, which do not very well go together: One, people walk, scoot and bike more, and hence need more space on the streets to be safe. Two, people also revert to the use of cars, which in turn leads to more cars on the street, more congestion and likely less safety for vulnerable road users.

“We do not know if this behavioural change is here to stay. Any approach to ride-hailing, no matter at which level, however needs to keep these new developments in mind.

“Traditionally, local passenger transport on demand was considered a matter for cities, regional or at best national authorities.

“Yet, things have changed in recent years, mainly thanks to digital technology.

“Even if the actual transport services are still provided at local level, they are now often organised or intermediated by digital platforms which operate at international level. This is partly due to technical developments, just to mention smartphones, real-time information, geolocalisation.

“While these developments have been broadly welcomed by citizens, they have also exacerbated the tensions between taxis and Private Hire Vehicles with driver and exposed the lack of common approaches at EU level.

“Different Member States have reacted differently to address issues that are specific to each situation but often have common roots.

“A number of market players have turned to the EU – be it the Commission or the Court of Justice – to seek guidance and clarity. Specifically in our Directorate General for Mobility and Transport, most complaints we received concerned Member States’ rules on Private Hire Vehicles with drivers.

“Now, let me share my assessment of the status quo. From what we have seen, even before the Coronavirus crisis hit, the markets do not function at optimal level in all Member States and there are repercussions on urban mobility as a whole.

“The Commission stands for fair opportunities for all existing and new market players. We welcome innovative services and strongly support digitalisation.

“We believe in healthy competition on the local-transport-on-demand markets. Competition leads to better services and innovation. Technological progress and digitalisation will lead to further efficiency gains and improvements.

“The rules which currently apply to taxis and PHV should be scrutinised. Do they allow for competition and innovation? Do they serve the customers, drivers, and operators? Which impact do they have on urban mobility?

“In line with the Commission’s Green Deal, the potential of the ride-hailing sector to contribute to the objective of decarbonising transport and fostering mobility should be assessed and exploited further.

“All possible roads should be explored in this regard, such as the use of zero emission vehicles for ride-hailing. It is important to decarbonise the vehicle fleet.

“Another important point is the access facilitation to public (mass) transport such as subway lines and trains. Ride-hailing needs to complement public transport and should not replace neither the use of public transport, nor walking or biking. Ride-hailing therefore needs to be integrated with public transport. It should enhance it, not substitute it. In this regard, Mobility as a Service (MaaS) platforms can help. For example, ride-hailing should ease access to public transport in the outskirts of metropolitan areas and provide first-mile and last-mile services to public transport.

“A different challenging key element is the reduction of “empty rides”, that means the kilometres driven without passengers. I say “challenging”, because for pre-booked vehicles, there will always be an approach drive to pick up the passenger. And, cars will physically need to be somewhere in between two jobs.

“One more aspect is to assess the potential of increasing the vehicles’ occupancy, in other words, to get more passengers into the same car. Some EU Member States have started to explore the possibility of passenger pooling. Of course, Corona makes this more difficult. Another aspect is that those people, who are willing to share a cab or “an Uber” might be those who would otherwise take the bus or metro. Customers should not be diverted away from public mass transport and active modes of transport such as walking and biking.

“I am coming to the end of my keynote speech. I wish you a great conference with enriching discussions. A dynamic, sustainable and safe local passenger transport on demand is part of the solution to the challenges cities face today.

“We need to think about ways to ensure that passenger transport-on-demand can deliver efficient services to citizens, while taking into account environmental and social concerns including working conditions of drivers.

“We absolutely need to decarbonise transport, mitigate climate change and keep cities liveable while people might tend to revert to private cars for fear of contamination with the Coronavirus on mass transport.

“I am curious to learn how you see the future of ride-hailing and about your views of how the EU could support such development.”