Business

Public Consultation Period for New Taxi-Uber Law Drawing to a Close

By 27 December 2017

The new law is expected to promote the use of road transport services apps.

The government is considering changes to the Law on Road Transportation Services, which will liberalise the market for passenger car transportation in Croatia. The public consultation process on the law has been launched, and it will end on 31 December. Everybody interested in taking part in the process should follow this link.

In short, the new law will promote the use of mobile apps as a metering device, instead of the obsolete taximeters. This is important because the app as a metering device is far more precise and more transparent than the taximeter since it provides users with price information before the start of the ride and ultimately lowers the cost of service.

The taximeter is an old measuring device which relies on the mechanical metering of the vehicle's wheel rotation, and it can deviate by about a hundred metres for an average city driving distance. On the other hand, the modern GPS measurement technology has a deviation of only 5 to 20 metres in the same urban driving conditions. In other words, GPS is at least five times more precise metering device than a taximeter. Additionally, the app provides users with information on estimated pricing before the ride is ordered.

While Uber supports changing the law, the taxi associations are divided among themselves, with representatives of the Association of Taxi Companies at the Croatian Chamber of Trades and Crafts (HOK), Eko Taxi, Radio Taxi Zagreb, the Dubrovnik Car Transport Association, the Association for Promotion of Taxis – Radio Taxi Split and the VG Taxi Association dissatisfied with the announced amendments, while the Taxi Association of the Croatian Chamber of Commerce (HGK) and Cammeo Group have backed the proposed provisions.

According to the proposed changes, the taxi market would be further liberalised, citizens would be able to order transport services through apps, the number of driving services licenses would no longer be restricted, and the price of services would be determined by the providers of services themselves, according to the Ministry of Maritime Affairs, Transport and Infrastructure.

It is expected that the new legislation will be adopted before the next tourist season.

Citizens interested in taking part in the public consultation process can do it in the same way as for other legislative proposals. By taking part in the process, citizens contribute to the development of democracy and the prosperity of the whole society. The public consultation period will remain open until 31 December 2017, so everybody interested should hurry with sending their comments.

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