How the Middle East-crisis changes one’s focus within days
- The Transportation Alliance
- Apr 1
- 6 min read
By: Wim Faber, Dutch Journalist and Taxi Specialist, Dutch Belgian Magazine (Magazine Personenvervoer)
From autonomous to alarming
One of my readers recently passed me a cute cartoon: a journalist is sitting behind a computer screen that reads: “Self-driving taxis safe says self writing article.” That cute hook would have fitted my intro about ‘Meet the Cab’, a recent taxi conference held in Vienna on February 4 and 5, beautifully.
The organisers of this two-day conference, local company Taxi 40100, decided to arrange its first day completely around all aspects of autonomous taxis, an area where Europe is lagging behind, compared to the US and China. Only recently the European Union (EU) has come out with its first proposals for regulation of autonomous vehicles in the 27 member countries. The final approach is expected later this year.
Fuel crisis for mobility industry
But then the (worldwide) consequences of the Iran war drew my eye to an alarming press release from the International Road Transport Union (IRU), which is not exactly a union, but a world-wide organisation which defends the interests of bus, coach, road haulage and to a minor extent, taxi companies (the latter group mainly in Europe). Seeing frightening headlines about fuel prices and passing petrol stations where car drivers were queueing up for relatively cheap petrol, alerted me even more to the plight of companies needing petrol (for you: ‘gas’) and/or diesel to provide their daily services. Fuel prices have increased by 30–35% across the EU since the onset of the crisis.
In many countries companies, associations and governments at various levels have been wringing their hands noticing the rapid price rise of most fuels since the start of the wars in the Middle East. Because of the varying levels of taxation in different countries in Europe, the price rise at the pump is either mitigated or accelerated. This leads to amazing ‘tank tourism’, like between The Netherlands [average price of petrol per litre € 2.31- € 2.61 ($ 2.68 - $ 3.03) average price of diesel per litre € 2.44 ($ 2.83 ) and Belgium (petrol per litre € 1.83 - € 1.90 ($ 2.12 - $ 2.20) and for diesel € 2.10 per litre ($ 2.43). As you undoubtedly know a US gallon is 3.79 litres.
Compensation
Both for public transport, coach and taxi companies, often working for tightly tendered contracts, the effects in the national economy are devastating. The transportation trade in many European countries is clamouring for compensation or a lowering of taxation on fuel prices in separate countries. 'Tank tourism’ is exacerbating local shortages and undermining national support measures. Most transport companies operate nationally, with road haulage, operating EU-wide, the main exception.
But in this fuel crisis and in that last area, the IRU recently called for urgent action by EU transport ministers. “As the fuel market crisis intensifies across the EU, IRU has urged its transport ministers to take immediate and coordinated EU-level action to keep supply chains moving and protect people’s mobility. In a letter to EU transport ministers, IRU has called for immediate and coordinated action to address escalating fuel market disruptions affecting the road transport sector. IRU warns that growing market volatility and supply pressures are already translating into extraordinarily high fuel prices and concrete operational distortions on the ground. This means increasing risks for the continuity of road transport operations across the EU if the crisis continues.” The letter calls for an urgent Transport Council meeting to address the evolving situation and enable coordinated action at EU level. IRU has proposed targeted measures for discussion, including a contingency plan to safeguard essential logistics flows and mobility, tackling sudden surges in demand and cross border issues, an EU crisis support framework to include increased state aid de minimis ceilings, and an EU fund to support companies in difficulties. Most public transport, taxi and coach companies are not looking at the EU but at their local/regional or national licensing authorities to find compensation for steeply rising fuel costs. Particularly when it comes to social transportation contracts, tight on finances, this is a serious challenge.
Local operations vs. supra-national tech developments
Nowadays, regulation, supervision and operation of the taxi trade remain largely local, with major technological developments like platforms, payment and dispatch systems plus autonomous vehicles being supra-national, driven by large private investors. They inveigled themselves into the taxi trade via forms of ‘cooperation’ (taxi dispatch centres siding with Uber, Bolt or others) or via the backdoor by buying dispatch technology (as Uber did with Autocab). In Frankfurt, Germany, Uber-partner SafeDriver Group even bought a large taxi dispatch centre, serving the larger part of the licensed Frankfurt taxi fleet. The (cash-)rich platforms are aiming higher nowadays, simply taking over the competition.
‘Meet the Cab’ once more
Returning briefly to the ‘Meet the Cab’-conference, after the ‘autonomous taxi-day', the second day was back to present-day basics: the future of the taxi trade with insights from The Netherlands, Australia, Iceland, France and Malta.
In Australia (25,000 taxis), Blair Davies, CEO of the Australian taxi association ATIA (and TTA Vice-President), said the taxi industry is eagerly awaiting compensation (expected to be in 2027) from the € 160 million class-action lawsuit against Uber for illegal market access. The Australian taxi service market is characterized by numerous third-party apps. Only 14% of customers call a taxi. Platform drivers are in a hybrid position between employee and self-employed. Their proper classification is the subject of ongoing and often toxic debate within the industry and with regulators.
The EU Platform Workers Directive is to be implemented by the end of this year. Similar regulation is also being developed in Australia. Noteworthy: Uber completely steers clear of transporting people with disabilities, particularly wheelchair users. This market is served entirely by taxi companies with adapted vehicles.
Iceland: "Still no Uber"
With a 1,000 taxis for a population of 390,000, Iceland is the only island without platform services, says Daniel Oéinarsson of the Icelandic Taxi Drivers' Association proudly. The island's high wages and prices make a cheap platform solution unlikely. Icelanders value personalized service and mostly book by phone. Although the negative effects of deregulation have been partially mitigated, the taxi industry is strongly demanding new regulation, such as clearly visible taxi license plates.
The Netherlands: Social transportation industry mainstay
The Dutch taxi industry, represented by Jantine Vochteloo of trade association KNV, focuses for 75% on contracted social transportation, which accounts for the majority of the trade’s revenue. The debate about the status of platform drivers continues. The largest Dutch trade union recently lost an appeal against Uber and six Uber drivers, with the court ruling that these drivers, as a group, cannot be considered employees.
As in many other countries, the Dutch taxi industry is facing an acute driver shortage. In 2027 trip data will be transferred directly from the vehicle to the supervisory authority. In Flanders, Belgium, this has been standard practice for years.
Debate: ‘The Future of the Taxi Sector’
The debate on "The Future of the Taxi Sector," professionally moderated by Gregor Beiner (Taxis for Smart Mobility T4SM), concluded that although the situation often varies considerably from country to country, some constants remain: fierce platform competition, ongoing discussions about platform drivers’ status, driver shortages, the pressure of digitalization and the increasing demand for taxi services. Other themes included the greening of the fleet, the platformization of taxi dispatch companies serving multiple user groups and a lack of loyalty among dispatch centre’s affiliated drivers.
“Lack of loyalty”
Hedy Borreman, CEO of TCA Amsterdam in The Netherlands, a cooperative operating 800 taxis explained that the company feels like a platform because TCA’s own shareholders are increasingly less loyal to its own brand and accept rides for Uber, earning less than with TCA’s own bookings. “A strange mentality,” she noted. “Given so many new developments, I don't want to look ahead five, let alone ten years.”
Drivers cornerstone of system
The situation is different at dispatch centre G7, running 10,000 taxis in Paris, according to CEO Armand Joseph-Oudin. The company's motto: "We offer mobility for everyone by providing our customers with the best possible service and we’re optimizing the working conditions and income of our drivers." Approximately 80% of G7-bookings are made digitally.
With G7 the customer experience is central, but the driver is the cornerstone of the system. G7 regularly organises special events for drivers and their families. The fight for stricter regulation for PHV’s and platforms continues unabated. The taxi industry sees itself as a partner with the city in the fight for a prominent place in the car-free cityscape.
Demographics are changing
Matthew Bezzina of eCabs, a Maltese technology company which started as a taxi and PHV company also considers himself a platform operator and is the third-largest intermediary in Malta. In Malta, where 5,000 taxis have been operating since deregulation, 60 to 70% of trips are booked digitally. Bezzina also notes that demographics are changing: younger customers book cabs differently. Key issues: too much price dumping, with quality of service coming a poor second. Sound regulation is needed with well-founded and consistent input for the licensing authority. Attractive local marketing should ensure the local taxi industry remains competitive. "We mustn't forget that Uber and Bolt are true masters of entering transport and labour markets."
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