1. Experiences with regulatory changes in the taxi industry Jon-Terje Bekken Institute of Transport Economic Norway jbe@toi.no www.toi.no Thredbo 9, Lisbon

2. 2 Conceptual framework Different market segments –Taxi ranks, hailing, telephone-booking, contracts –Also different size between cities and countries Different market organisation and competition –PHVs vs Taxis, Centrals vs fleets vs “independent operators” Differences in the regulations –Different approaches, strengths and combinations  Not easy to make generalisations

3. 3 Entry regulations in Europe. Strict quantity regulation –With strict quality requirements: Norway, (Germany), (Finland), Denmark –With lean quality requirements: Belgium, France, Spain No quantity restrictions –With strict quality requirements: Austria, Sweden, (Germany), (The Netherlands) –With lean quality requirements: (Hungary), Ireland However several have deregulated the last two decades

4. 4 Fare regulation in Europe No fare regulation: –Sweden (centrals), Norway (major cities), UK (some places) Maximum or fixed fares: –Belgium, Finland, Hungary, The Netherlands, Ireland, Norway, Switzerland, UK, Austria, Germany, Ireland, UK (London), France, Denmark

5. 5 The overall trends Focus on quality regulations not quantity regulations Maximum fares still retained or strong focus on improved information

6. 6 Trend towards quality standards

7. 7 Some experiences with deregulation Ireland (entry) Sweden (fares and entry) Norway (fares) The Netherlands (entry and fares)

8. 8 Ireland Entry deregulated - From tradable licences to free market overnight Increased supply (3x in 2 years) Increased availability Reduced utilisation Increased problems of “unacceptable behaviour” Tightened some quality aspects later

9. 9 Ireland - supply exploded

10. 10 Sweden Deregulated fares and entry in 1990: Fares increased initially Supply increased (most in cities) Reduced utilisation Increased cost of subsidised trips in rural areas - reduction in cities Tightened many quality aspects later

11. 11 Sweden changes overnight

12. 12 Norway Fares deregulated in major cities General fare increase More differentiation (higher night fares lower daytime) Informational problems Plans to deregulate entry as well

13. 13 The Netherlands Stepwise deregulation From regulation on most aspect to “free” market Increased supply No increase in demand Fares still regulated The stepwise approach worked well

14. 14 The Netherlands – more cabs but smaller companies

15. 15 Market characteristicsNumbers of vehiclesFaresLevel of service Ireland (Entry deregulated) The taxi rank- and hailing segments dominate (Dublin). Massive increase. (+200% in Dublin, + 100% on average). Still regulated.Reduced waiting time for customers nationwide. Primarily at taxi ranks. Small improvements in telephone booking segment. New Zealand (Fares and entry deregulated) The telephone-booking segment important in particular outside urban areas. Massive increase (+160% 1989- 2001 on average). Marginal decrease in taxis numbers as well as availability in rural areas. Decline in real terms increase in nominal terms. Fares increased in real terms in rural areas. Reduced waiting time. Far greater range of services. Sweden (Fares and entry deregulated) The telephone-booking segment dominates. Large share (56%) of trips subsidized (primarily in rural areas). Increase immediately after deregulation, stable thereafter. No long term increase in rural areas. The efficiency has decreased. Immediate increase (real terms), stable thereafter. The major increase occurred in medium cities and rural areas. The cost of subsidized trips increased in rural areas and decreased in cities. Reduced waiting time, no change in consumer satisfaction. Norway (Fares deregulated in some areas) The telephone-booking segment dominates nationwide. Large share (20%) of trips subsidized (primarily in rural areas). No change due to deregulation.Immediate increase (real terms), stable thereafter. Greater fare differentiations (most prominent in large cities). The supply at night and in weekends has increased due to the increased revenue potential caused by fare differentiation. The Netherlands (Entry deregulated, maximum fares) The taxi rank segment dominates in the largest cities, telephone segment elsewhere. Large share of public subsidized trips, primarily in rural areas. Significant increase in the number of taxis, primarily at taxi ranks. Increased the first year and fell the second year (real terms). Increased availability most pronounced at taxi ranks in the weekends. Taxi usage has only increased marginally in urban areas and decreased in rural areas. USAVery different, however street work dominates in urban areas. Massive increase (+18 to +127%) IncreasingUnchanged CanadaVery different, however street work dominates in urban areas. IncreaseN/AIncreased availability, reduced quality.

16. 16 Deregulation summarized (1) Increased availability (cities), but reduced utilisation –Reduced waiting time for consumers –Increased costs per trip Fares adjust, but not necessarily reduced – lack of competition and previously over suppressed –No surprise?? –Fare differentiation (more related to demand) the great advantage

17. 17 Deregulation summarized (2) Regional differences must be considered –Rural areas no continuous supply curve –Cities with a transparent industry –Metropolitans with externalities Dispatching Centrals play an important role –Information, recognition, branding, competition –Enforcement, self-discipline –Cost efficient supply – same supply with less taxis

18. 18 FaresOslo taxi TariffWhen? Where?Fares TAXA 1WeekdaysStarting tariff:€ 3,69 06-17+ €/km€ 1,63 + €/hour€ 0,00 TAXA 2Evening 17-22Starting tariff:€ 4,29 Saturday 06-15+ €/km€ 1,88 + €/hour€ 0,00 TAXA 3 Night Mon-Th (22-06) Starting tariff:€ 4,52 Saturday 15-22 + €/km€ 2,01 Sunday 06-06 + €/hour€ 0,00 TAXA 4Weekend nightStarting tariff:€ 5,24 Friday + Saturday+ €/km€ 2,33 22-06+ €/hour€ 0,00 TAXA 5Public hollidaysStarting tariff:€ 5,95 + €/km€ 2,62 + €/hour€ 0,00 FaresTaxi 2 - Oslo TariffWhen? Where?Fares TAXA 1Weekday daytimeStarting tariff:€ 3,57 Mon-fri 110-14.30+ €/km (0-4km)€ 1,54 + €/km (>4km)€ 1,37 TAXA 2Mon-fri 06-10Starting tariff:€ 4,29 Mon-fri 14.30-18+ €/km (0-4km)€ 2,00 Saturday 06-18+ €/km (>4km)€ 1,49 TAXA 3Mon-fri 18-24Starting tariff:€ 4,64 Sunday 06-24+ €/km (0-4km)€ 2,13 + €/km (>4km)€ 1,73 TAXA 4Mon-fri 00-06Starting tariff:€ 5,24 Friday 18-24+ €/km (0-4km)€ 2,35 Saturday 18-24+ €/km (>4km)€ 1,81 TAXA 5Saturday 00-06Starting tariff:€ 5,60 Sunday 00-06+ €/km (0-4km)€ 2,67 + €/km (>4km)€ 2,04 TAXA 6Public hollidaysStarting tariff:€ 6,15 + €/km (0-4km)€ 2,24 + €/km (>4km)€ 3,20 FaresNorgestaxi Oslo TariffWhen? Where?Fares TAXA 1WeekdaysStarting tariff:€ 3,81 06-17+ €/km€ 1,43 + €/hour€ 0,00 TAXA 2Evening 17-22Starting tariff:€ 4,64 + €/km€ 1,88 + €/hour€ 0,00 TAXA 3 Night Starting tariff:€ 4,88 Saturday-Thursday + €/km€ 1,98 22-06 + €/hour€ 0,00 TAXA 4WeekendStarting tariff:€ 4,88 Saturday+Sunday+ €/km€ 1,98 06-22+ €/hour€ 0,00 TAXA 5Weekend nightStarting tariff:€ 5,60 Friday+Saturday+ €/km€ 2,28 22-06+ €/hour€ 0,00 TAXA 6Public hollidaysStarting tariff:€ 5,95 + €/km€ 2,43 + €/hour€ 0,00 Is fare information enough?

19. 19 The Swedish fare information requirements Fares Taxi Stockholm TariffWhen? Where? WeekdaysStarting tariff:€ 4,50 9-15+ €/km€ 0,84 + €/hour€ 32,04 Not covered byStarting tariff:€ 4,50 Taxa 1 or Taxa 3+ €/km€ 0,99 + €/hour€ 32,04 Friday 21 - Saturday 05 Starting tariff:€ 4,50 Saturday 21 - Sunday 05 + €/km€ 1,28 Public holidays + €/hour€ 40,71 City Centre to Airport City Centre to Airport TAXA 3 Fares Fixed fares Fixed fares TAXA 1 TAXA 2 Comparable fare* - € 27,43 - € 20,87 € 22,37

20. 20 Fares Oslo taxi TariffWhen? Where? WeekdaysStarting tariff:€ 3,69 06-17+ €/km€ 1,63 + €/hour€ 0,00 Evening 17-22Starting tariff:€ 4,29 Saturday 06-15+ €/km€ 1,88 + €/hour€ 0,00 Night Mon-Th (22-06) Starting tariff:€ 4,52 Saturday 15-22 + €/km€ 2,01 Sunday 06-06 + €/hour€ 0,00 Weekend nightStarting tariff:€ 5,24 Friday + Saturday+ €/km€ 2,33 22-06+ €/hour€ 0,00 Public hollidaysStarting tariff:€ 5,95 + €/km€ 2,62 + €/hour€ 0,00 TAXA 3 TAXA 4 Fares TAXA 1 TAXA 2 TAXA 5 Comparable fare 0- 4km € 24,64 € 28,57 € 20,00 € 23,10 € 32,14 Fares Norgestaxi Oslo TariffWhen? Where? WeekdaysStarting tariff:€ 3,81 06-17+ €/km€ 1,43 + €/hour€ 0,00 Evening 17-22Starting tariff:€ 4,64 + €/km€ 1,88 + €/hour€ 0,00 Night Starting tariff:€ 4,88 Saturday-Thursday + €/km€ 1,98 22-06 + €/hour€ 0,00 WeekendStarting tariff:€ 4,88 Saturday+Sunday+ €/km€ 1,98 06-22+ €/hour€ 0,00 Weekend nightStarting tariff:€ 5,60 Friday+Saturday+ €/km€ 2,28 22-06+ €/hour€ 0,00 Public hollidaysStarting tariff:€ 5,95 + €/km€ 2,43 + €/hour€ 0,00 TAXA 4 TAXA 5 TAXA 2 TAXA 1 Fares TAXA 6 TAXA 3 Compareable fare* € 24,71 € 28,38 € 23,39 € 18,12 € 30,29 Fares Taxi 2 - Oslo TariffWhen? Where? Weekday daytimeStarting tariff:€ 3,57 Mon-fri 110-14.30+ €/km (0-4km)€ 1,54 + €/km (>4km)€ 1,37 Mon-fri 06-10Starting tariff:€ 4,29 Mon-fri 14.30-18+ €/km (0-4km)€ 2,00 Saturday 06-18+ €/km (>4km)€ 1,49 Mon-fri 18-24Starting tariff:€ 4,64 Sunday 06-24+ €/km (0-4km)€ 2,13 + €/km (>4km)€ 1,73 Mon-fri 00-06Starting tariff:€ 5,24 Friday 18-24+ €/km (0-4km)€ 2,35 Saturday 18-24+ €/km (>4km)€ 1,81 Saturday 00-06Starting tariff:€ 5,60 Sunday 00-06+ €/km (0-4km)€ 2,67 + €/km (>4km)€ 2,04 Public hollidaysStarting tariff:€ 6,15 + €/km (0-4km)€ 2,24 + €/km (>4km)€ 3,20 TAXA 1 Fares TAXA 6 TAXA 2 TAXA 3 TAXA 4 TAXA 5 Compareable fare* € 17,26 € 38,11 € 19,17 € 21,90 € 23,33 € 25,95 Weekdays 11-14.30 (Diff 16%) Public hollidays Diff (27%) Saturday at 4PM (Diff 29%) Weekdays 06-17 (Diff 11%) Seeing these kind of schedules – would you ”go shopping”? And what about these kind of comparable fares?

21. 21 The Norwegian taxi industry and proposed changes Licence scheme Required affiliation Quality requirements Taxi meter areas Dispatching Centrals Operators (Licensees) Drivers Fare regulation