The taxi market in Norway is currently subject to many legal restrictions. The Norwegian government, however, wants the regulations to be liberalized, which is clearly opposed by the opposition. According to the ruling coalition, the liberalization of the taxi transport market will increase competition and contribute to lower prices. Critics of this idea, however, argue that the effect will be quite counterproductive.
The taxi market in Norway is losing money
The taxi market in Norway is not the cheapest. Additionally, the industry is losing the battle for customers. As a result, in the last year alone, companies in this sector reported a decrease in revenues by NOK 230 million. The shrinking market segment is also visible in the growing number of passengerless taxis on Norwegian streets.
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The most important suggestions
Bearing in mind the above difficulties, the government of Erna Solberg proposed, inter alia, release of licensing for commercial passenger transport. Other restrictions in this industry are also to be removed. The proposal was justified by the need to increase the number of taxis on Norwegian streets, which is to increase competition between carriers. All this so that the prices of the courses will eventually drop.
Anticipated changes
According to the proposed new regulations, taxi drivers will still be required to obtain a transport permit people in passenger vehicles. Anyone with the appropriate skills will be able to provide commercial transport, but will not have to belong to any corporation or taxi network.
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The coalition party Høyre on Facebook expressed its enthusiasm for the idea, arguing that it would allow companies such as Uber to enter the market. The company was already operating on the Norwegian market, but decided to withdraw due to the restrictive regulations on the taxi industry.
Outraged opposition
Opposition politicians from the Labor Party do not hide their indignation. As Langholm Hansen said in an interview with Nettavisen: “Uber does not pay taxes in Norway, nor is it liable for its actions to the same extent as other employers. Although we are positive about the technological solutions offered by this company, we believe that these solutions should be used in cooperation with taxi centers ”. He also added that: "The fact that the taxi industry is losing the competition to the so-called "Pirate taxi drivers" does not mean that we should legalize the black market in this sector. Similarly to the fact that we do not raise the speed limits due to the repeated exceeding by a certain group of drivers ”.
According to SV, liberalization is more chaos
Politicians associated with the SV are also critical. According to Arne Nævra, a spokesman for the party's transport policy, the liberation of the industry will only lead to increased chaos on Norwegian streets. He gives Oslo as an example, as well as New York. In this American city, even Uber itself has limited the possibility of too many drivers entering the market. All because the liberalization of regulations has led to a reduction in the quality of the company's services.
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The opposite effect
According to Bjørnar Moxnes, Rødt chairman, the release of the rules would be counterproductive. Prices will not fall, but will even rise, and in his opinion the best examples of this are Sweden and Akershus / Oslo. “More taxis means fewer trips per one taxi driver. In practice, this means that if carriers want to maintain their income, they will be forced to raise prices, ”says Bjørnar Moxnes in an interview with Nettavisen.
Is the government's proposal favorable?
It is hard to judge whether the truth lies with the ruling coalition or the opposition. Probably the right is in the middle, as is usually the case in this type of dispute. One should be tempted to conduct in-depth and objective analyzes to make the best decision. On the one hand, the liberalization of regulations always increases competition in the market, but on the other hand, the taxi industry is a specific type of activity. First of all, because of the responsibility for the health and life of passengers.
And what do you think about it? Let me know in the comments!
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