Date
1 December 2022

Tag

Active

Country
Austria Austria
Geographical scope
National
Type
  • Type

    Regulation of passenger transport

    Legal
View Initiative

Description

Scope of the Initiative (Änderung des Gelegenheitsverkehrsgesetzes erzielt (917/A)

The Federal coalition partners proposed and approved a legislation merging all ‘rental car business with passenger cars’ (for-hire) and ‘taxi business’ (taxi) into a new and unified business trade called ‘passenger transport trade with cars’ (Personenbeförderungsgewerbe mit Pkw). Consequently, for-hire car companies are required to follow the ‘stricter’ legislative requirements which taxi companies are subject to. This includes new operational requirements for drivers and importantly, a unified fare structure. All three political parties view the legislation as a positive step, discussing the transport companies with private cars as increasingly important to mobility, and as such, should have appropriate conditions for good working conditions, competition, and development.

In response to the Amendment, the Chamber of Commerce has forged coalitions (e.g. World Road Transport Organisation) to influence forthcoming regulatory amendments for the taxi and for-hire car markets.

Scale of the initiative

Uber and Bolt entered the Austrian market in 2014 as for-hire car companies. While their workers have been covered by the same peak-level collective agreement negotiated by the Chamber of Commerce and the Labour counterpart, both fall into a different legislative category due to their classification as for-hire car companies. The Amendment has homogenised the two services, making all actors in the market subject to the provision of the new regulation.

Strengths and Weaknesses

All Austrian coalition partners believe this is a positive amendment which meets demands from the social partners as well as taxi businesses. The resulting ‘level playing field’ described by Ministerial spokespeople frames the previous status quo as unacceptable and not conducive to fair market conditions. In particular, the amendment has been cited as improving conditions for doing business and encouraging innovation. Trade unions have also acknowledged that the legislation protects incumbent companies, preserving market conditions which allow for fair competition, for price setting and ride hailing. However, the Unions have also voiced their discomfort with platform mediators such as Uber and Bolt operating in Austria. In particular, union busting behaviour, bogus self-employment and poor working conditions are cited as issues which will not be resolved by the Amendment. Regionally, it is unclear how this federal legislative amendment will impact price-setting.


Additional metadata

Keywords
sector aspects, competition, lobbying, regulatory changes
Actors
Government
Sector
Transportation and storage
Platforms
JustEat

Citation

Eurofound (2022), Amendment of the Traffic Act (917/A) (Initiative), Record number 4251, Platform Economy Database, Dublin, https://apps.eurofound.europa.eu/platformeconomydb/amendment-of-the-traffic-act-917a-110014.