Spanish taxi drivers strike in effort to stem Uber tide

Striking taxi drivers caused major disruption across Spain on Wednesday as they demanded tighter regulation of digital companies like Uber, which they warn could soon wipe out their industry.

In Madrid, Barcelona and many other cities, drivers observed the 24-hour strike, which began at 6am. The action caused severe problems for many commuters and travellers, with airports and railway stations affected. In Madrid thousands of taxi drivers from across Spain gathered for a march through the centre of the city to congress, which they said should act to supervise digital apps offering transport services.

"Our livelihood is being taken from us. All we can do is fight for our families," said Alberto "Tito" Álvarez, spokesman for the elite Taxi company, which has been prominent in the campaign against Uber and its competitor Cabify.

“They’re destroying society,” he said. “Uber doesn’t just work with taxis, it works in delivery, and other areas. It wants to Uber-ise the economy … But this isn’t the United States, this is Europe.”

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One per 30 law

Wednesday’s strike was sparked by a supreme court ruling earlier this month that granted operating licences, previously blocked by local authorities, to Uber and similar companies. Although only 80 licences were approved, the taxi industry claims the ruling sets a precedent that will see thousands more granted, thus flooding the market.

Existing Spanish legislation allows only one licence to be issued for so-called VTCs, or private driven vehicles such as those operated by Uber and Cabify, for every 30 taxi permits in circulation. However, the taxi sector has long complained that this ratio is not respected. Undersecretary for transport Julio Gómez-Pomar admitted on Wednesday that the number of VTC licences in use is triple that allowed by the law.

“Markets can be liberalised, society can be liberalised, but it has to be very strictly regulated, supervised and balanced,” said Elpidio José Silva, a lawyer representing several taxi organisations.

“The 70,000 families that make a living through the taxi industry cannot be made to pay for this liberalisation,” he added.

Exaggerating threat

Mr Silva and Mr Álvarez are among those eagerly awaiting another judicial decision, from the European Court of Justice, which they have asked to rule on whether Uber is, as it claims, merely a digital mediator or, as they say, a transport company that should be subject to strict local regulations. If, as many expect, the ruling goes against Uber, it could be a serious blow for the American firm and its European operations.

But UNAUTO, an association representing companies that employ VTC drivers, believes the taxi industry is exaggerating the threat posed by companies like Uber.

“Taxi drivers need to be competitive, they need to offer a good price and improve their service,” said Eduardo Martín, of the association.

There were clashes between some taxi drivers and police in Madrid during Wednesday’s demonstration. Mr Martín said that several dozen cars represented by UNAUTO had been vandalised throughout the day and that in Barcelona one driver was hospitalised.