Estonia leads the way on regulated ridesharing
From Mexico and Australia to the Philippines and India, places around the world are recognizing that ridesharing services like Uber can deliver benefits to riders looking for more ways to get around, drivers looking for new economic opportunities, and cities looking to manage congestion and extend the reach of public transit. Smart regulations can let these services grow while ensuring public safety and protecting consumers.
Last week, Estonia became the first country in Europe to consider such laws. A bill introduced by MP Kalle Palling would amend the Public Transportation Act to regulate ridesharing. As Palling has said:
“Technology allows us to make use of existing resources in smart, flexible ways. Regulations should be just as smart and flexible — focused on outcomes, like safety or consumer protection, rather than the means by which those outcomes are achieved.”
The draft legislation would require electronic platforms like Uber to meet certain standards on transparency and safety — for instance by requiring transparency around how fares are calculated; providing riders with electronic receipts; and displaying a driver’s photo and license plate number before the passenger enters a vehicle.
At the same time, the legislation also lowers barriers for taxi drivers, for instance by streamlining some duplicative requirements around training and certification. It also expands taxis’ permitted service area. And by reinforcing the exclusive right of taxis to pick up passengers on the street, the legislation encourages fair competition.
Uber has also been working with the Estonian Tax and Customs Board to explore the development of a new electronic tax system that would let self-employed Uber drivers declare the income they earn on the platform at the press of a button.
At an event on the sharing economy last week in Tallinn, Andrus Ansip, former Prime Minister of Estonia and current Vice President of the European Commission responsible for the Digital Single Market, said:
“The Estonian Parliament doesn’t have to vote for or against the collaborative economy — people have already embraced it. The parliament’s task is now to adjust to what people want and remove barriers so that the collaborative economy can grow and expand in Estonia. And the same goes for Europe.”
You can watch a video of the event, including remarks by Pierre-Dimitri Gore-Coty, Uber’s head of operations in Europe, below:
