In Italy the quantity of taxis available is not sufficient to satisfy customer demand during the busiest times: in Milan there is 38% probability that there are none available. In Rome the percentage rises to 44% and in Naples even at 47%, that is, almost one call in two receives no response. Wouldn’t it be enough to simply increase the number of licenses to solve the problem? The answer is far from trivial and therefore, before seeing it, I think it is useful to understand the problem a little more closely, taking an overview of the situation today.
The taxi situation today
In absolute terms, Rome is in first place in terms of taxis, with 7692 licenses, followed by Milan with 4853 And Naples with 2364. These are data which, however, must be compared to the number of inhabitants: Milan, which is the most virtuous in this field, has an average of approximately 3.5 licenses per 1000 inhabitantsfollowed by Rome with 2.8 and Naples with 2.5. If we compare them to London they are low values, given that there are some there 5.1 per 1000 inhabitants. If we compare them to Paris instead they are online, since there are some there 2.54 For 1000 inhabitants.
However, let’s consider that Paris, just to give an example, has 16 subway linestherefore it is also normal that the demand for taxis is a little lower than in Italy, because moving around the city is easier.
But let’s get back here to us. In the Bel Paese the number of licenses has been blocked for years: in Milan there have been no new licenses since 2003a Rome from the 2005 ea Naples from the ’98. The record, however, is in Livorno where there have been no new licenses since 1977. At the same time, however, it is right to point out that the situation is not the same everywhere, given that they were added in Bologna 36 taxis in 2018 ea Venice 12 in 2022. But how did we end up in this situation?
Brief history of taxi licensing
Before 1992 the law left the task of autonomously regulating the taxi service and its management to individual municipalities, includingissuing of licenses. However, things soon started to change and we can summarize the main developments in three stages.
Law 21 of 1992
The first big step was taken with the law 21 of 1992 when taxi management was regulated a national level. This law essentially says that, on the one hand, municipalities have the freedom to issue new licenses, both free of charge (therefore through public competition) and for a fee. On the other hand, taxi drivers who have a license can sell it freely or give it to whoever they want, for example children or relatives. What was the result though? That over time, few licenses have been issued and, because they are few, their value has skyrocketed. Consider that today we are calmly talking about 150-200 thousand euros per license.
The Bersani decree of 2006
Obviously if someone spends so much on a license, they have every interest in keeping the number of other licenses in circulation low, otherwise there is devaluation. So to try to meet the needs of taxi drivers and, at the same time, increase the number of taxis in circulation, in 2006 arrives the Bersani Decree. This says that if the municipalities decide to issue new licenses they can also do so for a fee (previously they could only be issued free of charge), and in this case the 20% of the proceeds actually goes to municipalities while the80% is redistributed among taxi drivers. Why is this? Because, as we said, if licenses increase not only does competition increase, but also the individual licenses already in circulation lose value.
These economic compensations, however, have always been seen by taxi drivers as not enough and, as a result, we have seen over the years big strikes nationwide, effectively paralyzing entire cities. The economic damage from these strikes is so great that, in fact, this has become a category with which the state struggles to find a compromise.
The Asset decree of 2023
So, the problem remained, and here we come to the third and final piece, the Asset Decree of 10 August 2023. With this decree i 65 largest Italian municipalities can sell a 20% more new licenses than those in circulation through a simplified procedure. But this time the 100% of the proceeds will go to taxi drivers and 0% to the municipalities. This was especially designed with a view to large events, such as the Jubilee of 2025 or the 2026 Winter Olympics. Currently some cities such as Milan and Bologna are trying to take this path but, at the moment, no further new licenses have been issued.
As you will have understood, today’s situation is anything but trivial and there is a lot of money at stake, major strikes and a lack of cars at times of maximum demand.
The alternatives to taxis: NCC and Uber
In reality there are alternatives to taxis, such as NCC (Rental with Driver) and private services, such as Uber. Let’s quickly see what changes between these three transport systems and what the critical issues are, taking four key aspects: rates, parking, licenses And reservation.
Rates
In the case of Taxi the fare is determined by the taximeter, which will depend on the time, route and length of the journey. THE’NCCi.e. Rental with Driver, involves agreeing on the amount before getting on board, so a real estimate is made before departure. In the case of Uber instead, customers know right away how much they will spend because the amount is calculated directly by the app during the booking phase.
Stopover
Taxis can park in the public areas with “taxi” written on themlike those close to the stations, while the NCC they must return to the garage at the end of each service. The Uber however they do not have the obligation to return at the end of each race.
Licenses
As for the licenses, we’ve seen it, i Taxi they necessarily require it and each license can easily cost between 150 thousand hey 200 thousand euros.
The NCC, on the other hand, they are also part of the “non-scheduled” public serviceso they also need a license. The difference compared to the Taxi is that the NCC licenses they cost less. This is because NCCs have from a certain point of view more constraints than a taxi – in fact they must have a garage, the booking must always be agreed in advance, etc., so in short, being less attractive they tend to cost less. Even Uber – to put it simply – requires drivers to have NCC licenses.
Reservation
Regarding the reservation, the NCC must necessarily be booked in advancespecifying a precise time and a precise meeting point. With a taxi, however, it is not obligatory to book it in advance and you can do so book on the spotcalling or using the app when we need it, or it can be taken directly on the street, at the car park or by stopping at a free taxi passing by.
For Uber instead the booking can be instantaneous, like for a taxi, but takes place exclusively via the app. So a sort of NCC service, but much faster. In fact, this is criticized by taxi drivers because since they are already outside the garage, Ubers can in fact completely replace taxis in big cities.
Once the differences are clarified, it is easy to understand why there is not always good blood between these three entities: there is strong friction, because in fact everyone sees the others as competitors. And this is also the reason why the liberalization of this sector is so complex, given that every attempt to open up towards this alternative – as you will have understood – was followed massive strikes by taxi drivers throughout Italy, forcing the government to do an about-face. To date, however, you should know that Uber is present in some Italian cities, as we have said, but in its Uber black version, which is the one with the most “luxury” and expensive service which, conceptually, is closest to the world of NCCs.
