The government finally has approved a law that regulates the activity of the new wave of personal transport companies, such as Uber and cabify, despite the Left Bloc’s enduring objections.The law now goes to the president for signature, or rejection. All being well, the app-based transport service will have an operational legal framework in place by the summer.
The new rules require the operator to have a licence, issued by the Institute of Mobility and Transport, before running any transport services. This Driver's Certificate of Vehicle Transport from Electronic Platforms (TVDE) is valid for a period of five years.
Uber, Cabify and other app-based operators, will pay the government a levy of between 0.1% and 2% of turnover, with the objective of "offsetting the administrative costs of regulating and monitoring their activities and stimulating compliance with the national objectives in urban mobility."
In the draft law, the Social Democratic Party suggested a 5% tax but yielded to the Socialists which wanted the lower taxation rate, keem as they are to see the spread of this new style of 'on demand' transport.
According to the text of the law approved today, drivers will have to have held a driving licence for at least three years, they will need to have an employment contract with the operator and are not allowed to drive more than 10 hours within a 24-hour period, regardless of the number of companies they work for.
There also will be a minimum number of training hours, still to be defined.
Vehicles must be registered with the operating company, they can not be more than seven years old since registered and they need to be covered by civil liability and personal accident insurance that includes passengers and any losses they might suffer.
Uber now operates in over 200 cities with passengers summoning a cab using a mobile phone app.
Advantages include, the payment method - an automatic debit on the customer’s credit card - and the low cost and speed of marrying a cab with a passenger.
Traditional taxi services in many cities worldwide have been complaining and seeking injunctions as their traditional service rapidly is becoming a thing of the past with customers deciding that app-based transport services are preferable.
Portugal's taxi drivers union, Antral, have fought hard to have Uber and similar companies, banned from operating. The union had some technical legal successes but Uber continued to operate despite being banned and now has a clear legal framework within which to operate and expand.
