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Are problems faced by ride-sharing companies due to their own choice to brand themselves as “ride hailing” rather than as taxis, thereby trying to circumvent stricter taxi legislation?

The current regulations in Europe regarding ride sharing and related mobility services continue to concern people. Bolt's president, Yevgeny Kabanov, recently shared some notable and shocking examples of legislation that he believes are in urgent need of revision. His message, posted on social media, immediately attracted attention and led to a lively discussion among various professionals.

empty ride

Kabanov cited Germany as an example, where ride-sharing company drivers are required to make an “empty trip” back to the garage if they are not immediately rebooked. This means that unnecessary kilometers are driven, which is both economically and ecologically disadvantageous. In Spain, minimum requirements have been imposed on the dimensions of ride-sharing vehicles in the regions of Catalonia and Andalusia, meaning that smaller and often more economical cars are no longer eligible. Perhaps the most bizarre example comes from Greece, where the minimum rental period for a ride-share vehicle is three hours, even if the actual ride lasts only twenty minutes.

Kabanov pointed out that these rules are not just anecdotes, but the harsh reality for millions of Europeans. He says outdated regulations create obstacles and uncertainty for both drivers and passengers in many EU countries. According to him, there is an urgent need for an EU-wide, uniform approach to shared urban mobility, something Bolt wants to continue to champion.

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bumper
Photo: result of European regulations and local rules.

De post from Kabanov provoked several responses, including that of Azarel Chamorro, who noted that many of these rules are likely outdated and easily circumvented. He emphasized that it is important to study these regulations from all perspectives, including the impact on employment models. 

Chamorro sees ride-sharing as a logical next step in the evolution of taxis, but warns that uncontrolled supply, pricing and gig economy models could lead to significant economic and social losses. He called on policymakers to include these factors in their considerations, such as the responsibility of drivers to manage their own vehicles and pay their own social insurance.

democratic processes

Zahhar Kirillov, Agile Delivery Manager at EPAM Systems, commented on Kabanov's proposal for an EU-wide approach. He noted that the democratic processes in each country lead to legislation tailored to the specific problems and wishes of that society. While some rules may sound silly, they are often adopted after extensive consideration and multiple rounds of voting. Kirillov pointed out that a one-size-fits-all approach as proposed by Kabanov could lead to new, perhaps equally impractical, regulations.

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Yevgeny Kabanov
Photo: © Pitane Blue - Startup Grind - Yevgeny Kabanov

The Bolt president advocates uniform European rules, “ride hailing” versus taxi legislation: who wins the battle for the road in Europe?

Steven Harrod, Associate Professor at the Technical University of Denmark, offered another perspective. He suggested that the problems ride-sharing companies face are due to their own choice to brand themselves as “ride hailing” rather than taxis, thereby trying to avoid stricter taxi legislation. According to Harrod, these rules would not apply to taxis, which raises the question of whether ride-sharing companies would be better off complying with existing taxi rules rather than advocating for new, tailor-made legislation.

debate

This discussion underlines the complexity of regulating shared mobility in Europe. On the one hand, there is the need to revise outdated and sometimes illogical rules, while on the other hand, the consequences of deregulation and the introduction of new models must be carefully considered. The debate between innovation and regulation remains topical, where the interests of companies, drivers and passengers must be carefully weighed.

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