Car share app Uber eyes return to Spain

Banned last year, Uber is changing its rules in order to enter the Spanish market, which it hopes to do in 2016.

Just weeks after Spain finally welcomed US streaming service Netflix to its shores, California-based car-sharing startup Uber is preparing for the second time to launch in the country.

Judges banned Uber’s first attempt to enter the Spanish market in December last year, with the courts ruling in favour of a lawsuit brought by Spanish taxi drivers arguing that the service contravened certain tax and regulation loopholes that typical taxi firms had to abide by…

The company has since admitted its “mistakes” in trying to enter the Spanish market too soon, and will now only work with drivers that are in possession of a valid and professional VTC licence, which is held by all professional drivers in Spain, including taxi, bus and delivery drivers.

Spanish startup app Cabify follows similar rules, and so Uber – should the company successfully be granted permission to operate in Spain – will be in direct competition with a company that has become a moderately successful homegrown story.

The Uber business model has been a success in many parts of the USA, and is also enjoying a large market share in the UK, the Netherlands and many other European countries. It is also used widely in parts of Southeast Asia.

Users simply download the app and, should they need a ride somewhere, can punch in their details and be presented with nearby Uber drivers who are willing and able to pick them up and take them to their required destination. Uber drivers in most other countries can be anybody with a roadworthy car and a driving licence, with Uber taking a percentage of the fare they charge each time they pick somebody up.

However, the service has attracted controversy because Uber does not dictate how each driver pays tax for the money earned, instead stating that they are all self-employed and simply washing their hands of this responsibility. Drivers are also exempt from the types of regulations that taxi drivers must abide by, and in some countries – particularly India – there have been concerns that such an unregulated service risks putting passengers in danger.

Largely, however, Uber appears to have tapped into a growing need for a taxi alternative, and its growth is testament to how well the general public have embraced the app.

Will Spain do likewise? It remains to be seen. Taxis in Spain are generally affordable, reliable and plentiful, and taxi firms are also increasingly web-savvy, offering apps and web-based discounts to ensure today’s younger generation do not turn their backs on one of the world’s oldest trades.

“We made mistakes last year,” said Carles Lloret, head of Uber in Spain. “We still believe in our business model but maybe Spain is not mature enough to accept private individuals carrying out these services.”

Uber has previously been banned in France and Germany.