POLITICS & INSTITUTIONS - ECONOMY

Taxi reform in home stretch



It is hoped that the reform will make space for new players in the market, and push companies to adopt innovative models, such as shared book systems Matic Zorman/archives

It is hoped that the reform will make space for new players in the market, and push companies to adopt innovative models, such as shared book systems Matic Zorman/archives

Luxembourg’s reform of the taxi system is getting closer to becoming reality after receiving a positive opinion from the competition council.

The proposed bill will abolish the territorial or service zone limitations currently in place for licensed taxis, remove restrictions on the number of licences that can be issued and introduce legal provisions for services of rental cars with a driver. The latter could open up the market to operators like Uber.

It is hoped that the reform will make space for new players in the market, and push companies to adopt innovative models, such as shared book systems.

According to the Competition Council, the importance of the taxi sector extends beyond its economic function, it also provides an alternative in the passenger transport market and could also affect the country's brand image.

The last reform, which dates from 2016/17, reduced the number of taxi zones from 44 to 6 and lifted price restrictions. It did not, however, have the hoped for effect of strengthening competition and decreasing rates.