Fierce competition in the taxi industry: how the sector is responding to VTC and apps

Competition in the taxi industry comes above all from VTC (private-hire vehicles with a driver booked through apps), but also from public transport, private cars and illegal services. The taxi responds with what makes it different, a regulated public service with official fares, accredited drivers and the option of hailing one in the street or taking one at a rank, and with modernisation: apps, card payment, online booking, fixed prices to the airport and hybrid and electric fleets.

It is a sector in the middle of a transformation, with rules that have changed several times in recent years and legal disputes still open. That is why we focus on what matters to passengers rather than on regulatory figures that may go out of date.

The differences between taxis and VTC deserve an article of their own: we explain them in the differences between taxis and VTC. And if what you are comparing is ways of getting to Barajas, have a look at the ways to get to Barajas Airport.

• Official, public fares, approved by the authorities and the same for all taxis.
• You can hail one in the street or take one at a rank, with no app or advance booking.
• Drivers with a municipal permit, who have passed an exam on the city, the regulations and the fares.
• Identified vehicles: official livery, licence number, taximeter and roof light.
• A public service, with service obligations and recognised user rights.

We gather the advantages users value most compared with the platforms in five advantages of the taxi over Uber.

The arrival of the platforms forced the taxi to move, and it has done so on several fronts:

• Modernised apps and dispatch services for ordering a taxi from your phone.
• Card payment everywhere, and other means of payment.
• Fixed prices on the most popular journeys, such as those to the airport, so that passengers know what they will pay before they travel. We explain this in the advantages of the fixed fare from the airport.
• Online and messaging bookings, with written confirmation.
• Cleaner fleets, with a growing majority of hybrids and electric vehicles.

More options and a service that has had to improve. When choosing, the key is to compare like with like: a fixed price known in advance versus one that can change with demand, an accredited driver versus one you know nothing about, and an identified vehicle versus informal touting at the terminal.

In our case, the transfer between Barajas and inside the M-30 costs €33 at any time, and each area has its own fixed fare, which you can see on the airport fares page. You can book online, by phone or on WhatsApp.