The government wants to end the never-ending standoff between taxis and VTCs. While hundreds of taxis blocked Toulouse (Haute-Garonne) on Monday to put pressure on the ongoing discussions, the Secretary of State for Transport, Alain Vidalies, presented his roadmap to the protagonists engaged in a marathon of negotiations. It involves the creation of a guarantee fund, financed by industry professionals, which would allow voluntary taxis to redeem their license.
This is one of the main requests of drivers who, with the arrival of Uber, have seen the value of their license collapse even though many of them have gone into debt to acquire it. Is this a good idea? Not so sure, if we believe Thomas Thévenoud, author of the law of 1 October 2014 regulating competition between taxis and VTCs.
How much would it cost the state to buy back taxi licenses?
THOMAS THEVENOUD. It is estimated at 5 billion euros for the licenses of the 20,000 Parisian taxis and up to 8 billion euros for the 60,000 French taxis. The State has good liquidity, but it will not be enough. Making taxpayers or consumers pay, through a tax on food, would be very unpopular. And the professionals, like G7 and Uber, will undoubtedly refuse to get involved. There is a real problem regarding the financing of this measure.
The idea had been excluded by the “Thévenoud law”. For that?
TT - For budget reasons. But also political. I remember that the value of licenses had exploded before Uber arrived. Up to €250,000 in Paris and €400,000 on the French Riviera! Their value has decreased but, without visibility into the origin of the funds, their redemption would be akin to money laundering. And replacing the current licenses with a simple administrative parking permit would pose other problems. In particular, we should have the means to ensure that a form of black market does not take hold. abandoning licenses would mean giving up regulated prices set by public authorities. Consumers could therefore no longer refer to the meter. So who will set the prices? We are entering a dangerous spiral. Even in New York, the land of liberalism, where Uber is very present, they have not gone so far as to abandon the licensing system. The only country to have completely liberalized the profession and to have established a guarantee fund is Ireland, but this only cost 13 million euros. We are not in the same order of magnitude.
What would be the solution?
TT 6 Since the arrival of the VTCs it is no longer a supply problem. The problem is, in the face of new forms of competition, to increase and guarantee the value of the taxi business. As? Thanks to a free and non-transferable license system. In exchange, taxis benefit from exclusive rights such as sacking, use of bus lanes and service at airports.
In Toulouse, spicy of taxi discontent, the blockade movement has been renewed for this Tuesday.
– How can the French government effectively manage the tensions between traditional taxi services and VTCs?
Interview Between Time.news Editor and Thomas Thévenoud
Editor: Welcome, Thomas Thévenoud. Thank you for joining us today to discuss the ongoing standoff between traditional taxi services and VTCs, especially with the recent protests in Toulouse. It’s certainly a hot topic right now.
Thomas Thévenoud: Thank you for having me. It’s an important issue that affects a lot of people in the industry, and I’m glad to engage in this discussion.
Editor: So, the government’s proposal to create a guarantee fund for taxi licenses is stirring quite a debate. Could you explain the potential financial implications of this move?
Thomas Thévenoud: Absolutely. The state would potentially need to acquire up to 8 billion euros to buy back the licenses of around 60,000 taxis across France. This is a hefty sum, especially when we consider the state’s budget and existing commitments.
Editor: That’s a staggering amount. What do you think about the feasibility of this proposal? Will the state be able to fund such an initiative without severely impacting taxpayers?
Thomas Thévenoud: That’s the crux of the problem. The state indeed has liquidity, but pushing this cost onto taxpayers or consumers would likely provoke a backlash. People are already stretched financially, and adding a tax on necessities like food would definitely be unpopular. Furthermore, taxi professionals and companies like G7 and Uber would likely resist contributing financially.
Editor: Given these concerns, do you believe the idea of a guarantee fund was poorly conceived or simply unrealistic?
Thomas Thévenoud: The idea itself isn’t necessarily bad, but it was ruled out by the Thévenoud law for concrete budgetary reasons. Our primary consideration was ensuring that the taxpayer wasn’t left to pick up the tab for something that should be a concern for the industry itself.
Editor: Interesting point. So, what do you think is the alternative approach to resolving the turmoil between taxis and VTCs?
Thomas Thévenoud: We need a thorough evaluation of the entire market landscape. Balancing regulations that ensure fair competition while also protecting the livelihoods of taxi drivers is essential. Perhaps a more gradual approach to integration, along with support measures like retraining programs, may provide a better solution.
Editor: That does sound more sustainable. However, protests like those we saw in Toulouse highlight the urgency of the situation. How should the government navigate these high tensions?
Thomas Thévenoud: Communication is key. Open dialogues with both taxi drivers and VTC representatives can foster understanding and collaboration. If stakeholders feel heard and safe under clear regulations, we might find an approach that alleviates tensions while also fostering innovation in transportation.
Editor: Wise words, Thomas. Last question: what role do you see technology playing in the future of the taxi and VTC industry?
Thomas Thévenoud: Technology should enhance competition, not stifle it. Innovations can create opportunities for improved service and efficiency, but they must harmonize with existing regulations. Finding that equilibrium will be vital going forward.
Editor: Thank you, Thomas. Your insights are incredibly valuable as we navigate this complex issue. We hope to see some positive resolutions soon.
Thomas Thévenoud: Thank you for having me. I share that hope. It’s crucial for the future of transportation in France.
