January 17, 2021

VTC authorizations grow by 533 in March and already exceed 14,000

VTC authorizations grow by 533 in March and already exceed 14,000

March closed with a barrage of new licenses for rental vehicles with driver (VTC). The net balance between those authorized by the Court and those that were withdrawn or from the market is 533 new authorizations of this type in all Spain, according to the registry data of the Ministry of Public Works. At this time, there are authorized 62,636 taxi licenses for 14,090 of VTC, which implies that the ratio between one and another is only 4.4. Although the law states that this ratio should be at most 1/30, a legal vacuum is allowing the massive arrival of new VTC licenses to the market. In 2009, the Omnibus Law completely liberalized the market. However, between 2012 and November 2015, when the ratio 1/30 was established by law, the autonomous communities, in charge of granting these permits, refused to give more authorizations claiming that the market was saturated. The companies of VTC resorted to the courts and now the Justice is giving them the reason. According to your calculations, and how LA RAZÓN published in its edition of March 28th, then there were still pending to get to the street some 4,500 VTC licenses of the 18,000 that are in total requested.

The community to which New authorizations have arrived is Madrid, with 644. At this moment, 7,269 permits of this type have been granted in this region, for 15,605 of the taxi. This means that the ratio is practically one Uber or Cabify for every two taxis. Sources of the taxi sector, however, assure that the real proportion is already 1/2 because "in Madrid there are many VTCs that are expelled from other provinces". They point directly to Catalonia. The regulations approved by the Generalitat that established a pre-contract for 15-minute VTC services led Uber and Cabify to close their operations in the community, although the latter has retaken it with 300 vehicles that it controls directly. Many companies of VTC vehicles have stopped operating in Catalonia after this march and, according to the taxi, they have moved to Madrid, although the Community of Madrid says that it has hardly detected cases of this type. The Catalan regulation has reduced the number of licenses granted in this autonomous community, which have gone from the 2,496 at the beginning of March to 2,171 at the beginning of April, 325 less.


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