Transportation

Uber, Blacklane and Co. run into headwind from taxi lobbyists

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Taxis and limousines – what could have been expected to be an explosive blend seems to have plenty potential for conflict. Most recently, a taxi driver association in Berlin proceeds against chauffeur service Blacklane.

As more and more limousine and chauffeur-services have popped up in recent years, the taxi industry is alarmed and ready to put up a fight with (relatively) new, innovative start ups like Blacklane, Uber and MyDriver that are trying to steal market share away from them. The transportation market, especially in Germany, is highly regulated. The Passenger Transportation Act (“Personenbeförderungsgesetz”) regulates the environment for public transportation and sets out the rules. In order to protect the taxi industry, limousine services are for example not permitted to offer spontaneous rides to passengers in Germany. Thanks to numerous Online-Apps though, limousines can be directed to the next waiting customer via our smartphones, bypassing the just-mentioned. More and more, limousine and chauffeur-services are levering out the privileges that were held for decades by the taxi industry.

In the most recent case, the taxi association of Berlin-Brandenburg had complained about the fact that the new Blacklane Smarts only have one door, as taxis and rental cars need two doors on their right side due to safety reasons. Blacklane counters accordingly with a special permission of the Berlin State Office for Public Order of affairs, stating that “Smarts do not have a rear bench seat and because of that, all passengers can enter and exit the vehicle safely.”

Another recent dispute between Uber, Chauffeur Privè and several taxi drivers in Paris far exceeded the category lobbying. The striking and furious taxi driver, as reported by the Rheinische Post, are said to have thrown paint buckets at cars of the two companies, slashed their tires, broken windows and injured at least one passenger.

After all, the poor attempts of the taxi industry to hamper the irruption of new competitors into the transportation market won’t be successful. The revolution of the transportation market, with more and more concepts penetrating the market, has already advanced too far. Instead, the taxi industry should take on the fight and be encouraged to defend their market share. The taxi companies need to work on their service and quality in order to keep passengers. As of today, the taxi industry has a turnover that is three times the turnover of the limousine industry – but that could change.

Especially in big cities where the number of people owning a car is declining, the people rely on alternative mobility options: car-sharing for example but also limousine and chauffeur services are growing in demand. The innovative offers reflect the spirit of the time, while the coolness factor of a taxi ride is virtually zero. In addition to that, many business travelers have gotten used to the limousine service in the US and are looking for the same in cities like Berlin. Cabbies – look out! Here comes the future.

Picture: Blacklane