Uber’s Return in Barcelona, Will it Last?

By Alexandra Welke

In March 2021, hundreds of taxi cabs joined a protest in the streets against the return of Uber services in Barcelona.[1] In January 2019, Uber, a U.S.-based ride-hailing service, withdrew from providing services in Barcelona after tough new restrictions were implemented by regional authorities.[2] Regional authorities ordered that rides arranged through mobile apps had to be hired at least 15 minutes in advance.[3] At the time, Uber said the requirement was “totally incompatible with the immediacy of [its] on-demand services.”[4] Because of its inability to meet the strict regulations, Uber stopped offering services in parts of Spain.[5] Finally, after a 2-year absence in the city, Uber launched a new app in Barcelona that allows users to book a traditional licensed taxi instead of a typical Uber driver, known as vehicles with chauffeurs (“VTCs”).[6] Uber has expanded its services to allow users to order rides from over 350 regular cabs charging with taximeters.[7] The company said it is seeking regulatory permission to also offer fixed rates for rides, reflecting Uber’s original model.[8] The company's current platform in Barcelona also provides car-sharing services and displays information about public transportation.[9] The most recent regulations in Barcelona came as a result of the huge pressure from the city, including taxi drivers who said Uber and its Spanish rival Cabify were operating “with an unfair advantage.”[10]

Uber has had a difficult time operating in Spain since its inception.[11] In 2014, Uber was forced to suspend its activity after a judge said the service constituted unfair competition.[12] In 2016, Uber returned to Madrid and later expanded into Barcelona in 2018.[13] However, at the end of 2017, Elite Taxi won a victory at the European Court of Justice which ruled that Uber was an ordinary transportation company instead of an app and should follow the same rules governing taxis.[14] In 2019, taxi drivers in Barcelona secured a pledge from regional and municipal authorities to make customers of ride-hailing services book the car up to one hour in advance.[15] As a result, ride-hailing services Uber and Cabify announced that they would be pulling their services out of Barcelona.[16] Those opposing the ride-hailing services criticized the move and stated that it created only an “artificial barrier.”[17] On the other hand, VTC drivers from Uber and Cabify protested on the streets to demonstrate their opposition to the government decree.[18] Uber and Cabify also announced that the measure would cost more than 3,500 people their jobs.[19] With Uber’s recent return in the city of 5.4 million residents, users are now able to order rides with new features that are in compliance with the city’s regulations and laws.[20]

However, the return of Uber has angered cab driver unions in Spain.[21] Representatives of the Elite Taxi union called Uber drivers “traitors,” and called the company's re-entry illegal.[22] Elite Taxi, a Barcelona-based association of drivers believes the new app “violates the tariff regime” imposed upon taxi drivers, bringing their prices down.[23] “There are rules, and they must be complied with… to guarantee users that all apps offer the same prices,” Elite Taxi’s Tito Alvarez told reporters. Another taxi driver, Luz, reported Uber acts “like a Trojan horse, saying they want to work with the taxis, but it’s a lie.”[24] Syed Junaid, a taxicab driver said that Uber was using the current pandemic to “lure hard-hit drivers and pit them against their peers” in order to gain a spot in the market.[25] Syed told reporters, “We won't allow them to do it here, because we have overcome the worst and we are about to leave the pandemic behind, so we don't need their platform to survive.”[26] Clearly, Uber’s return in Spain has not been favored by all.

With the current conflict taking place in Spain between taxicab drivers and VTC cars, such as Uber and Cabify, it is important to consider whether these two sectors have any commonalities and should be treated the same or whether the two sectors have different goals in mind. Currently, taxi drivers in Spain are subject to much stricter health, safety, and driving qualification rules than their colleagues at Uber and Cabify.[27] Additionally, the rates charged by taxi drivers are set by city authorities, unlike the rates for Uber and Cabify, which can increase when demand is higher.[28] However, both sectors share some fundamental traits.[29] Customers of taxis and ride-booking services want similar things, including to travel from one point to another.[30] However, these two very similar services continue to be regulated in completely different ways.[31]

With protests and years of conflict, the country remains clearly conflicted on how to respond. Some say that the “trouble lies in treating two very similar activities as though they [are] different.”[32] Other sources involved in the business say that authorities should make the same requirements of all city transportation services.[33] One taxicab driver reported that “It makes no sense for taxi drivers to have to pass tough driving tests and demonstrate knowledge of the city’s streets, while some VTC drivers are cruising around with their L-plate.”[34] If Spain were to implement similar standards between taxicab drivers and VTC cars, employees may not feel the need to compete against each other. Currently, with differing standards and regulations, employees are forced to compare and critique what one service offers that the other may not. If Spain takes a closer look at how it can treat taxi services and ride-hailing services the same, it may ease the tension that has existed for many years.

[1] Renata Brito & Aritz Parra, Taxi driver unions protest Uber’s return to Barcelona, AP News (Mar. 18, 2021), https://apnews.com/article/media-coronavirus-pandemic-barcelona-spain-b80b9080b187ff7b91e7f460610ce22f.

[2] Id.

[3] AP news wire, Taxi driver unions protest Uber's return to Barcelona, Independent (Mar. 18, 2021), https://www.independent.co.uk/news/taxi-driver-unions-protest-ubers-return-to-barcelona-uber-barcelona-spain-spanish-london-b1818997.html.

[4] Id.

[5] Id.

[6] Barcelona taxi drivers protest against Uber’s return, Expatica (Mar. 18, 2021), https://www.expatica.com/es/uncategorized/barcelona-taxi-drivers-protest-against-ubers-return-154173/.

[7] AP news wire, supra note 3.  

[8] Id.

[9] Id.

[10] Id.

[11] See Barcelona taxi drivers protest against Uber’s return, supra note 6.

[12] Id.

[13] Id.

[14] Id.

[15] Luis Doncel, Taxis vs Uber: A war between very similar enemies, El Pais (Jan. 29, 2019), https://english.elpais.com/elpais/2019/01/29/inenglish/1548749144_862481.html.

[16] Josep Cata Figuls, Uber, Cabify announce they are pulling their services out of Barcelona, El Pais (Jan. 31, 2019), https://english.elpais.com/elpais/2019/01/31/inenglish/1548940738_151302.html.

[17] Id.

[18] Id.

[19] Id.

[20] See Barcelona taxi drivers protest against Uber’s return, supra note 6.

[21] AP news wire, supra note 3. 

[22] Renata Brito & Aritz Parra, Taxi driver unions protest Uber’s return in Barcelona, 69 News (Mar. 18, 2021), https://www.wfmz.com/news/taxi-driver-unions-protest-ubers-return-to-barcelona/article_18fefb17-c3a8-5eba-b0e8-6eedddf1fcfc.html.

[23] Id.

[24] Id.

[25] AP news wire, supra note 3. 

[26] Id.

[27] Luis Doncel, supra note 15. 

[28] Id.

[29] Id.

[30] Id.

[31] See Renata Brito & Aritz Parra, Taxi driver unions protest Uber's return to Barcelona, The Buffalo News (Mar. 18, 2021), https://buffalonews.com/news/world/taxi-driver-unions-protest-ubers-return-to-barcelona/article_1f43c0b3-6f5f-5b5f-95e9-8555407cc747.html.

[32] Id.

[33] Luis Doncel, supra note 15. 

[34] Id.