Uber And Out: Ridesharing in Spain

You would never get an Uber driver talking over a crackly line to a controller, getting information as to the next pick-up and finishing the communication with an "over and out". Uber drivers don't do this type of communication. They don't have controllers. They go as they please within the cities they serve, anticipating pocketing 80% of fares, needing only an Uber phone, an iPhone supplied by the company (for a deposit) that is loaded with a driver Uber app. Their only spoken communication will be with users, those in the car or those who may phone with a specific request. What could be easier?

If you live on Mars you might not know about Uber. In which case ... a short lesson. Uber is an American company that was founded under six years ago. It operates using a mobile app via which users can find the nearest driver who is signed up with the company. No money changes hands, as the user supplies credit-card information. The fare is calculated through a mix of time and distance. Drivers are vetted, so they have to provide proof of a valid driving licence and vehicle insurance and photographic proof of their cars; no rust buckets with many a dent for an Uber driver.

Uber rolled out its first overseas service in Paris at the end of 2011. It came to Spain  early last year but not to Mallorca. The service operates only in Madrid, Barcelona and Valencia. Or did. Before a judge instructed Uber to cease operations last month. The taxi-drivers in Madrid denounced Uber, claiming unfair competition from drivers who have neither a licence to operate as a taxi-driver or the specific insurance for providing a public transport service. Spain is not the only country to have introduced a ban. France, for example, has as well.

The ban is not, however, looked upon as the end for Uber in Spain. The company is looking at ways of working around current laws and also, naturally enough, at what other courts might have to say, which might well mean at European level. It might also be encouraged by the fact that Spain's National Competition Commission (CNC) declined in June last year to ban Uber. Indeed, the commission has since opened up a process of public debate and consultation into what is generally now being referred to as the "collaborative economy", one through which individuals offer their services (of different types) via other mobile apps or social media. The Madrid taxi-drivers have got their way with the court but not with the commission.

Uber and the ridesharing (or carsharing, if you prefer) service that it makes available is one part of the so-called P2P phenomenon - peer to peer, in this instance user to driver. Uber is the facilitator and not the controller, even if it does have or is supposed to have certain controls over its drivers and can instantaneously change the basis for fare calculation according to demand, as typified by its "surge pricing"; it was this which pushed fares up during the hostage crisis in Sydney and drew such an outcry, for which the company has since apologised.

Essentially though, Uber is peer to peer, with one of the peers, the driver, providing his service, his time, his skills (?) and his car. It is, therefore, a similar principle by which accommodation websites like Airbnb operate. A peer has a room, a flat, a house to rent. The other peer, the customer, books it; Airbnb makes its money by taking a cut from the rent paid, just as Uber takes its 20% from a car fare.

The competition commission has not confined itself to Uber. It has also opened up a consultation regarding the renting of private accommodation, something which brings us yet again to the thorny issue of the holiday let. What is interesting with the Uber case, however, is that the Madrid court has applied a nationwide ban. Where accommodation is concerned, of course, it is up to the regions to decide. But the ban makes it ever more imperative that Spain and its regions adopt altogether more coherent approaches to the "collaborative economy". P2P has muddied the already muddy waters of holiday let regulations, but it is not going away, either where accommodation is concerned or ridesharing or any other service. There is now a lobby group, Sharing España, which includes providers similar to Uber; they are simply not as well-known and don't attract the same controversy or attention.

Uber is not out. It will surely return, but it will require a shift in understanding by regulators of a dynamic - the "collaborative economy" - which as yet is not well enough understood in Spain and is certainly not well enough understood in terms of the way in which, in the grander scheme of things, it may well bring about a change to traditional notions of employment and of work.