How flexible fare models can enhance performance, transparency and long-term sustainability for Europe’s taxi networks.
Taxi services have long been a flexible, on-demand part of urban transport networks across Europe.
The arrival of app-based services has revolutionised both the taxi industry and how people choose to get around.
Dynamic pricing, a mechanism by which taxi fares can be adjusted based on real-time driver supply and rider demand conditions, can offer benefits to both taxi riders through a more reliable taxi service and taxi drivers in the form of improved income through higher trip completion rates. However, taxi fares in most European cities are highly regulated, which can limit the ability to offer dynamic pricing.
Working with Uber, Steer has developed a report that assesses how dynamic pricing can influence the performance of e-hail taxi services in Europe and identifies policy measures that could enhance the reliability and long-term sustainability of taxi services across Europe.
This study draws on a range of evidence sources, including: a review of existing literature, analysis of current regulations and fare policies across 22 European cities, and an analysis of taxi trip data made through Uber’s platform across 15 European cities, providing real-world evidence of how different regulatory approaches shape market outcomes. (....)