- Uber has changed the configuration of transfers in cities, causing reactions in established systems.
- Resistance to Uber has diminished over time, especially in Europe, where more and more taxi drivers are joining the platform.
- Despite the uncertainty in labor regulations, Uber’s business in Europe is growing and is seen as a strong market with business innovation.
The arrival of Uber (and other transport applications) in cities changed the configuration of transfers, something that produced reactions from established systems.
However, with the passage of time, the resistance became more and more lax.
One example is what Uber is experiencing in Europe, where the app says more and more taxi drivers are joining the platform.
That’s right, in an interview with ReutersAnabel Díaz, Uber executive in charge of supervising the mobility business in that region, said that the app business is growing stronger despite the uncertainty that persists regarding labor regulations in collaborative economies.
And he gave figures: in Europe, the Middle East and Africa Uber numbers are growing “pretty well,” with rates ranging from 10 to 50 percent year-over-year in some cities.
The most important European markets in terms of growth: Great Britain, France, Germany and Spain.
According to the executive, the Europeans are markets with very solid business performance and enormous innovation, especially due to the “development of the taxi solution”.
According to Uber data, the use of the app by taxi drivers in Europe has doubled between March 2022 and March 2023. Indeed, it went from 5 percent to 10 percent of all trips.
Taxi drivers who use the app do so as a complement to their transport business.
Conflict between taxi drivers and Uber was reduced by regulations that require drivers of the app to obtain a business license.
“Drivers have returned to the platform post-pandemic in unprecedented numbers, globally, and that is driving a better level of service,” Diaz said.
In its financial reports, Uber does not break down the data by region and by segment, so it is not possible to know how the business is going beyond the group. It is known that his ride-sharing business and delivery business, Uber Eats, share roughly half of the revenue.
Uber and taxis in Europe
Europe reported Uber’s last fiscal quarter of about 2.12 billion dollars in revenue (adding Uber plus Uber Eats), that is, close to 25 percent of the company’s total, which makes that region the largest market without counting to the United States.
The laws regarding when drivers should be considered company employees are constantly changing in Europe, with very different models in force in Spain, Germany and the UK.
Next month will be key in this regard, since all the countries of the European Union are going to try to unify their rules at a meeting of the European Council.
Uber says that its drivers are contractors, but the truth is that “we will adapt,” the companies “will find a way to move forward,” Díaz said in the interview.
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