The Future of Ride-Hailing
The Future of Ride Hailing
As we approach the 2024 European Parliament elections, Move EU, the EU association for on- demand mobility, advocates for forward-looking policies that acknowledge and enhance the pivotal role of ride-hailing in the European urban mobility landscape. This position paper builds upon the challenges and opportunities outlined by the European Commission during the 2019-2024 mandate and outlines what policy-makers can do to seize the opportunities created by the sector.
190 Million Reasons for Change
The evolution of the ride-hailing sector is a living proof of the power of technology and innovation in urban mobility. From the very first journey facilitated through an app, to serving hundreds of cities around Europe today, ride-hailing is now an integral part of people’s daily lives. By the end of this decade, almost 190 million people (according to Statista) - 40% of all Europeans will be using ride- hailing to meet their mobility needs. This evolution from a novel idea to a core component of urban mobility underscores the sector ' s potential to further drive innovation, sustainability, and accessibility in the cities of tomorrow. And this evolution has created countless opportunities along the way.
Acknowledging Ride Hailing's Transformative Potential
The European Commission has acknowledged the potential of ride- hailing in a series of strategic documents issued in the current mandate. In 2020, the Sustainable and Smart Mobility Strategy highlighted the shift towards shared and collaborative mobility services, facilitated by intermediary platforms, reducing the number of vehicles in daily traffic. The 2021 New Urban Mobility Framework built on this, recognizing ride- hailing as a game-changer. In 2022, a dedicated European Commission Notice acknowledged ride hailing actors as enablers to decarbonize transport, identifying obstacles in local rules and underscoring their role in sustainable passenger transport-on-demand.
However, there are still many regulatory obstacles and discrepancies that ride-hailing actors are confronted with, many of which hamper competition, undermine sustainability goals and are to the disadvantage of the consumers:
- The existence of the return to garage rule forces drivers to return to their headquarters after finishing a trip, leading to empty trips.
- Artificial caps on licences mean professional drivers cannot find the opportunity to meet the increasing demand for their services throughout Europe.
- Minimum waiting times between the order and the start of the journey make it practically impossible to use services.
- Minimum trip times make it impossible for drivers to maximise their earning potential and to meet the mobility needs of the passengers of their region.
- Requirements for drivers to buy unnecessary large cars means less public space, more emissions and limits the capacity of drivers to have a profitable economic activity.
- The requirements to obtain licences for drivers are often burdensome and can differ from one city district to another.
- PHV drivers still cannot access city areas or road lanes open for taxis, creating strong discrimination between licensed professionals which provide the same service.
- While it is perfectly possible to e-hail a taxi, pricing and other regulations do not allow to fully apply all efficiencies of platforms to the taxi sector.
- Legal uncertainty still exists around the obligations and limitations of online mobility platforms that provide online intermediation services.
These issues are common across Europe, and have a negative effect on both passengers, drivers, and platforms. This is why Move EU advocates for a more harmonised approach at union level.
Boosting Ride-Hailing as part of the future of Urban Mobility
1. Creating a Level Playing Field and Addressing Anti-Competitive Policies
Move EU strongly advocates for Member States, regions and cities to reduce the discriminatory regulations and practices that hamper the potential of ride-hailing as a compelling alternative to private car usage, effectively addressing pressing urban challenges such as congestion, air quality, and limited urban space. Concretely, there is a need for EU policymakers to address anti-competitive policies and create predictability and certainty for ride-hailing drivers e.g. avoiding the discriminatory treatment of PHV drivers compared to taxi drivers without depriving taxis of the possibility to fully benefit from platform efficiencies.
By introducing measures that allow for PHVs and taxis to meet the consumers’ needs and operate in a regulated framework that prioritises sustainable mobility, safety and prioritises the local mobility needs, we aim to substantially reduce urban dependency on private cars, aligning with the broader objective of creating more sustainable and livable cities. Move EU envisions a future where ride-hailing becomes an integral and accessible component of urban transportation, fostering reduced dependency on private cars, enhanced mobility options, and ultimately contributing to the creation of more efficient and environmentally friendly urban spaces.
2. Role of Ride-Hailing in Urban Transformation and Increasing Efficiency
Move EU calls for policies facilitating the integration of ride-hailing services into urban mobility systems, recognizing them as indispensable components of first- and last-mile connectivity. By championing this policy demand, we emphasise the pivotal role ride-hailing plays in complementing traditional urban mobility options. In particular, to tackle cases in which PHV drivers are restricted from serving connections between airports and cities, or using lanes that can be used by buses and taxis exclusively.
We want to emphasise the importance of policies such as the removal of caps and minimum waiting times, the abolishment of practices like return to the garage and the possibility to apply dynamic, upfront fares to taxis. These policies will ensure the widespread availability and accessibility of ride-hailing services, especially in areas where round- the-clock public transport options are limited, or areas that are underserved by public transport. This approach not only promotes the integration of ride-hailing into the urban mobility system but also addresses the critical need for accessible mobility options beyond the core public transport networks.
Furthermore, we call for the establishment of regulatory frameworks that actively support and promote ride-hailing as a strategic mean to contribute addressing congestion, pollution, and the demand for extensive road infrastructure, e.g. by including it in cities Sustainable Urban Mobility Plans. These policies not only contribute to the reduction of urban congestion and pollution but also align with our vision for more sustainable and eco-friendly urban spaces. By formally recognizing and endorsing ride-hailing, we can pave the way for a transportation landscape that is more efficient, less environmentally impactful, and better aligned with the needs of modern cities. Crisies such as the COVID-19 pandemic demonstrated the resilience of ride-hailing services, ensuring on-demand mobility for essential workers when public transport faced challenges. By incorporating ride-hailing into emergency plans, cities can enhance their ability to provide resilient, flexible, and safe transportation solutions during unforeseen circumstances, contributing to the overall resilience of urban mobility systems.
By incorporating ride-hailing into emergency plans, cities can enhance their ability to provide resilient, flexible, and safe transportation solutions during unforeseen circumstances, contributing to the overall resilience of urban mobility systems.
3. Increasing Energy Efficiency and Professional Access
Move EU advocates for policies that actively support ride-hailing platforms in their commitment to decarbonizing services and facilitating the transition to zero-emission vehicles among drivers, e.g. by boosting the second hand market of electric vehicles, facilitating a right to plug and ensuring sufficient infrastructure in residential areas across the EU.
While privately owned vehicles are most of the time parked, vehicles used by professional drivers are characterised by much higher utility and annual mileage.
Combining public transport with on-demand mobility options such as ride-hailing offers the potential to reduce private car usage, which can increase resource efficiency and enables cities to rethink urban space.
In addition, the requirements in place to become a professional driver need to be streamlined. Currently, requirements differ significantly across the EU and do not take technological progress into account. In some instances, drivers need to demonstrate they are able to use a traditional map to navigate, or are forced to obtain multiple licences to be eligible to operate in one agglomeration, resulting in a considerable bureaucratic investment.
Move EU is dedicated to working collaboratively with stakeholders and policymakers to ensure the implementation of these policies, fostering a future where ride-hailing remains both economically vibrant and ecologically responsible.
Conclusion
Move EU aims to demonstrate the concrete actions required to capitalise on the advantages of ride-hailing services and foster sustainable urban mobility in Europe. The collaboration of stakeholders and policy-makers is essential to transforming these proposals into effective policies for the benefit of European citizens.