Romania could ban dynamic pricing in blow to ridesharing apps
The Romanian Government is expected to issue an emergency ordinance banning dynamic pricing, which is used by ridesharing apps and allows prices for a ride to change depending on demand.
The alternative transport law will be modified through an emergency ordinance following recent protests by taxi drivers, making it so such services will be authorized similarly to taxi services, and Uber and Bolt drivers will no longer be able to use third parties’ cars, such as rented or leased cars. The cars must also not be older than 10 years. The project also stipulates the introduction of the same type of metering equipment as in taxis.
The ordinance will also increase authorization fees to RON 1,000 (€200), and Uber and Bolt drivers will only be able to provide transport services in the county where they have their car registered. Moreover, drivers will have to establish a company to provide alternative transport services, being subjected to a new taxation regime. Additionally, drivers engaging in alternative transport will have a harder time obtaining permits.
The new rules are criticized by representatives of ridesharing companies, while taxi drivers are skeptical that they will be enforced in their current form.
The Confederation of Authorized Operators and Transporters in Romania, the taxi drivers’ union, said it is essential to have the same approach for taxi services and alternative transport. The organization highlights that it has no objections against digital platforms but expresses concern for the application of fair rules in the field of passenger transport.
On the other side, representatives of alternative transport companies say that the proposed legislation would effectively put them out of the market. “We hope the Government will not force three million users to only use taxis. At the same time, if taxi services had truly been successful in the market, we wouldn't be here, and we believe that the energy taxi drivers expend should be used to modify their own legislation to be up-to-date with today's modern technologies. If such a project were approved, it would mean the elimination of alternative transport services from the market,” said Catalin Codreanu, president of the Coalition for Digital Economy, cited by TVRinfo.
Roughly 50,000 drivers work in the alternative transport sector.
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