Luxembourg has abandoned the state-owned taxi platform
Getty Images
The Luxembourg government has decided not to create a state-owned platform for ordering taxis and chauffeur-driven cars (VLC), explaining that international applications already fully meet the needs of users, including international customers. Instead, the authorities will focus on updating the legal framework to better regulate the paid passenger transport sector.
The decision follows a series of consultations held in 2024 with key market players including the Taxi Federation, the Chambre des Métiers (Chamber of Crafts), the OGBL and LCGB trade unions, as well as representatives from the police, customs and labour inspectorate. During the discussions, it was noted that the creation of a state-owned platform does not meet the real needs of users and may not be able to compete with already popular international apps such as Uber and Bolt.
Minister of Mobility and Public Works Yuriko Backes stressed that the focus will be on reforming legislation to ensure social protection of workers and respect for labour rights in the taxi and hire car and driver sector. The new draft law will include the necessary technical and regulatory provisions to increase market transparency and protect the interests of drivers. In particular, the draft will include regulations on labour protection, social protection and fair competition conditions.
The decision not to create a state platform is also due to the fact that the government programme for the period 2023-2028 did not include such a project. The authorities believe that international platforms already cover the demand for taxi and chauffeur-driven car hire services, which makes the creation of a national platform uneconomical. In addition, there was no financial commitment in the budget for the implementation of such a project.
A draft law aimed at restructuring the taxi sector and integrating chauffeur-driven car rental services is being finalised and will be submitted to the Council of Government in the coming weeks. The new legal framework is expected to provide clearer rules of operation in the paid passenger transport market, improve labour conditions for drivers and improve the quality of services for consumers.
