Transcript Experiences with regulatory changes in taxi industry

Experiences with regulatory changes
in the taxi industry
Jon-Terje Bekken
Institute of Transport Economic
Norway
Thredbo 9, Lisbon
[email protected]
www.toi.no
Conceptual framework
• Different market segments
– Taxi ranks, hailing, telephone-booking, contracts
– Also different size between cities and countries
• Different market organisation and competition
Percentage of trips paid for by the public sector. Source: Bekken 2003
Less vs
thanTaxis,
10%
10%-25% vs fleets
More than
25%
Figures N/A
– PHVs
Centrals
vs
“independent
Berlin, Helsinki,
Brussels,
Stockholm
Geneva, Budapest,
Case-study
operators”
Vienna
Amsterdam,
London, Madrid, Paris
cities
Dublin, Oslo
• Differences
in the regulationsBelgium, Finland, the
Germany
Countries
(average)
– Different approaches,
Austria, France, Ireland,
Netherlands, Hungary,
Spain, Switzerland,
strengths Sweden,
and combinations
Norway
Great Britain
Not easy to make generalisations
2
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
3
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
4
The overall trends
• Focus on quality regulations not quantity
regulations
• Maximum fares still retained or strong focus
on improved information
5
Tight quality
requirements
(EU dir 96/
Berlin
Finland
Austria
Hungary
Quality and service
requirements for operators
London
Norway
(Oslo)
Geneva
Madrid
Netherlands
Paris
Ireland
Brussels
Lean quality
requirements
Trend towards quality standar
Sweden
No entry control
flexible quantity control
Quantity control
(market access)
Tight quantity control
6
Some experiences with
deregulation
•
•
•
•
Ireland (entry)
Sweden (fares and entry)
Norway (fares)
The Netherlands (entry and fares)
7
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
8
Ireland - supply exploded
PHVs, Taxis
10 000
70
60
8 000
50
6 000
40
30
4 000
20
2 000
10
0
0
Pre deregulation
Taxi licences
PHVs
Percentage of hours
surveyed with a waiting
time less than 5 min
Effects of the deregulation in Dublin
Short term effect Medium term effect
(1 year)
(2 years)
Hours surveyed with a waiting time less than 5 min.
9
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
10
16000
15000
250
14000
200
13000
12000
150
11000
100
10000
50
9000
8000
Number of bankrupcies
300
Taxi operators
Taxi vehicles
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0
1990
Taxi vehicles, taxi operators
Sweden changes overnight
Bankruptcies
11
Norway
Fares deregulated in major cities
• General fare increase
• More differentiation (higher night fares lower
daytime)
• Informational problems
Plans to deregulate entry as well
12
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
13
The Netherlands – more cabs but
smaller companies
40 %
34 %
31 %
33 %
30 %
23 %
20 %
11 %
10 %
0%
-10 %
-20 %
-16 %
-30 %
-26 %
-31 %
-40 %
The Netherlands
Rural areas
Urban areas
4 largest cities
Increas in number of taxis 1999-2001
Increase in the number of taxis per company 1999-2001
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Ireland
(Entry deregulated)
Market characteristics
Numbers of vehicles
Fares
Level of service
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 Massive increase (+160% 1989- Decline in real terms increase in Reduced waiting time. Far greater range
of services.
important in particular outside
2001 on average). Marginal nominal terms. Fares increased in
urban areas.
real terms in rural areas.
decrease in taxis numbers as
well as availability in rural areas.
Sweden
(Fares and entry
deregulated)
The telephone-booking segment
Increase immediately after
Immediate increase (real terms),
dominates.
deregulation, stable thereafter.
stable thereafter. The major
Large share (56%) of trips
No long term increase in rural increase occurred in medium cities
subsidized (primarily in rural
areas. The efficiency has
and rural areas. The cost of
areas).
decreased.
subsidized trips increased in rural
areas and decreased in cities.
Reduced waiting time, no change in
consumer satisfaction.
Norway
The telephone-booking segment No change due to deregulation. Immediate increase (real terms), The supply at night and in weekends has
dominates nationwide.
(Fares deregulated
stable thereafter. Greater fare increased due to the increased revenue
in some areas)
Large share (20%) of trips
differentiations (most prominent in potential caused by fare differentiation.
large cities).
subsidized (primarily in rural
areas).
The Netherlands The taxi rank segment dominates
Significant increase in the
Increased the first year and fell the Increased availability most pronounced
second year (real terms).
(Entry deregulated, in the largest cities, telephone number of taxis, primarily at taxi
at taxi ranks in the weekends. Taxi
maximum fares) segment elsewhere. Large share
ranks.
usage has only increased marginally in
of public subsidized trips, primarily
urban areas and decreased in rural
in rural areas.
areas.
USA
Canada
Very different, however street work
dominates in urban areas.
Very different, however street work
dominates in urban areas.
Massive increase (+18 to
+127%)
Increase
Increasing
Unchanged
N/A
Increased availability, reduced quality.
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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
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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
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Fares
Oslo taxi
Tariff
When? Where?
TAXA 1
TAXA 2
TAXA 3
TAXA 4
TAXA 5
Fares
Weekdays
06-17
Starting tariff:
€ 3,69
+ €/km
€ 1,63
+ €/hour
€ 0,00
Taxi
2
Oslo
Starting tariff:
€ 4,29
When? Where?
+ €/km
€ 1,88
Weekday daytime
+ €/hour
€ 0,00
Mon-fri 110-14.30
Starting tariff:
€ 4,52
+ €/km
€ Fares
2,01
Mon-fri 06-10
+ €/hour
€ Tariff
0,00
Mon-fri 14.30-18
Starting tariff:
€ TAXA
5,24 1
Saturday 06-18
+ €/km
€ 2,33
Mon-fri 18-24
+ €/hour
€ 0,00
Sunday 06-24
Starting tariff:
€ TAXA
5,95 2
+ €/km
€ 2,62
Mon-fri 00-06
+ €/hour
€ 0,00
Friday 18-24
TAXA 3
Saturday 18-24
Saturday 00-06
Sunday 00-06
TAXA 4
Is fare information enough?
Fares
Evening 17-22
Tariff
Saturday 06-15
TAXA 1
Night Mon-Th (22-06)
Saturday 15-22
Sunday 06-06TAXA 2
Weekend night
Friday + Saturday
TAXA 3
22-06
Public hollidays
TAXA 4
TAXA 5
TAXA 6
Fares
Starting tariff:
€ 3,57
+ €/km (0-4km)
€ 1,54
+ €/km (>4km)
€ 1,37
Norgestaxi Oslo
Starting tariff:
€ 4,29
When? Where?
+ €/km (0-4km)
€ 2,00
Weekdays
+ €/km (>4km)
€ 1,49
06-17
Starting tariff:
€ 4,64
+ €/km (0-4km)
€ 2,13
Evening 17-22
+ €/km (>4km)
€ 1,73
Starting tariff:
€ 5,24
+ €/km (0-4km)Night € 2,35
+ €/km (>4km)
€ 1,81
Saturday-Thursday
Starting tariff: 22-06 € 5,60
+ €/km (0-4km)
€ 2,67
Weekend
+ €/km (>4km)
€ 2,04
Saturday+Sunday
Public hollidays
Starting tariff: 06-22 € 6,15
+ €/km (0-4km)
€ 2,24
TAXA 5
Weekend night
+ €/km (>4km)
€ 3,20
Friday+Saturday
TAXA 6
22-06
Public hollidays
Fares
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
18
+ €/hour
€ 3,81
€ 1,43
€ 0,00
€ 4,64
€ 1,88
€ 0,00
€ 4,88
€ 1,98
€ 0,00
€ 4,88
€ 1,98
€ 0,00
€ 5,60
€ 2,28
€ 0,00
€ 5,95
€ 2,43
€ 0,00
The Swedish fare information
requirements
Fares
Taxi Stockholm
Tariff
TAXA 1
When? Where?
Weekdays
9-15
TAXA 2
TAXA 3
Fixed
fares
Fixed
fares
Fares
Starting tariff:
+ €/km
+ €/hour
Not covered by
Starting tariff:
Taxa 1 or Taxa 3
+ €/km
+ €/hour
Friday 21 - Saturday 05 Starting tariff:
Saturday 21 - Sunday 05 + €/km
Public holidays
+ €/hour
City Centre to
Airport
City Centre to
Airport
Comparable fare*
€ 4,50
€ 0,84
€ 32,04
€ 4,50
€ 0,99
€ 32,04
€ 4,50
€ 1,28
€ 40,71
€ 20,87
€ 22,37
€ 27,43
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Fares
Oslo taxi
Tariff
When? Where?
TAXA 1
Weekdays
06-17
TAXA 2
Evening 17-22
Saturday 06-15
TAXA 3
Night Mon-Th (22-06)
Saturday 15-22
Sunday 06-06
TAXA 4
Weekend night
Friday + Saturday
22-06
Public hollidays
TAXA 5
Fares
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
€ 3,69
€ 1,63
€ 0,00
€ 4,29
€ 1,88
€ 0,00
€ 4,52
€ 2,01
€ 0,00
€ 5,24
€ 2,33
€ 0,00
€ 5,95
€ 2,62
€ 0,00
Comparable fare 04km
€ 20,00
€ 23,10
€ 24,64
€ 28,57
Fares
€ 32,14
Weekdays 06-17
(Diff 11%)
Norgestaxi Oslo
Tariff
TAXA 1
When? Where?
Weekdays
06-17
When? Where?
Weekday daytime
Mon-fri 110-14.30
TAXA 2
Mon-fri 06-10
Mon-fri 14.30-18
Saturday 06-18
Mon-fri 18-24
Sunday 06-24
TAXA 3
TAXA 2
Evening 17-22
TAXA 3
Night
Saturday-Thursday
22-06
TAXA 4
Weekend
Saturday+Sunday
06-22
Weekend night
Friday+Saturday
22-06
Public hollidays
TAXA 5
TAXA 6
TAXA 5
Fares
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Starting tariff:
+ €/km
+ €/hour
Compareable fare*
€ 3,81
€ 1,43
€ 0,00
€ 4,64
€ 1,88
€ 0,00
€ 4,88
€ 1,98
€ 0,00
€ 4,88
€ 1,98
€ 0,00
€ 5,60
€ 2,28
€ 0,00
€ 5,95
€ 2,43
€ 0,00
€ 18,12
€ 23,39
€ 24,71
€ 24,71
€ 28,38
€ 30,29
Taxi 2 - Oslo
Tariff
TAXA 1
TAXA 4
Fares
Weekdays 11-14.30
(Diff 16%)
TAXA 6
Mon-fri 00-06
Friday 18-24
Saturday 18-24
Saturday 00-06
Sunday 00-06
Public hollidays
Fares
Starting tariff:
+ €/km (0-4km)
+ €/km (>4km)
Starting tariff:
+ €/km (0-4km)
+ €/km (>4km)
Starting tariff:
+ €/km (0-4km)
+ €/km (>4km)
Starting tariff:
+ €/km (0-4km)
+ €/km (>4km)
Starting tariff:
+ €/km (0-4km)
+ €/km (>4km)
Starting tariff:
+ €/km (0-4km)
+ €/km (>4km)
Compareable fare*
€ 3,57
€ 1,54
€ 1,37
€ 4,29
€ 2,00
€ 1,49
€ 4,64
€ 2,13
€ 1,73
€ 5,24
€ 2,35
€ 1,81
€ 5,60
€ 2,67
€ 2,04
€ 6,15
€ 2,24
€ 3,20
€ 17,26
€ 19,17
€ 21,90
€ 23,33
€ 25,95
€ 38,11
Public hollidays
Diff (27%)
Saturday at 4PM
(Diff 29%)
20