After the current government repealed the legislation that allowed foreign transport platforms to enter the Slovenian market as one of its first measures, the well-known US-based ride-hailing and delivery platform Uber has now started its operations with a bang. However, since it is not entering the Slovenian market as a transport provider, this will not really liberalise the market at all, but merely maintain and consolidate the existing taxi monopoly.
“We offer reliable and convenient options for passengers and new opportunities for drivers,” said Uber, which started operations in the capital on Tuesday, the 20th of May. They have joined forces with existing taxi and transport services. Uber’s country director for Slovenia and Croatia, Morena Šimatić, was quoted by the Slovenian Press Agency (STA) as saying that “by leveraging Uber’s advanced technology, the platform now efficiently connects passengers with available licensed drivers.”
According to Šimatić, Uber is only entering our market as a technology partner for licensed local taxi drivers. “This means that only professional licensed taxi drivers who are already working in accordance with the current Slovenian legislation can offer rides,” she was clear, adding that all Uber app users will be able to see an indicative fare when they enter a destination and be connected with a driver who can accept a ride. A partner vehicle will take passengers to their desired location, and they will pay for the ride, which will be displayed on the taximeter.
The price of each journey will be set in accordance with the official fare structure of the Municipality of Ljubljana. However, Šimatić said that since the trips will be paid for via the Uber app, i.e. digitally, full traceability and compliance with Slovenian tax regulations will be ensured. Passengers and drivers will have the opportunity to rate each other after the ride, and through the app, passengers will be able to leave positive comments for the drivers or even pay them a tip.
The monopoly will not be broken
Any students, pensioners or individuals who, when Uber came to Slovenia, might have hoped to earn extra money by providing rides, will be disappointed, as this will simply not be possible here. The regulatory framework that comes with the arrival of Uber in Slovenia has been criticised by economist and former Minister of the Economy, Dr Matej Lahovnik, who wrote on the social network X: “In Slovenia, pensioners and students cannot use Uber to become its drivers, in order to earn some extra money – it can only be used by taxi drivers, so it will not break, but consolidate the monopoly of taxi drivers. So essentially, the government has managed to “turn Nutella into shit with its regulation”.”
Another critic of the situation at hand is Aleš Hojs, the former Minister of the Interior and prominent member of the Slovenian Democratic Party (Slovenska demokratska stranka – SDS), who called the arrival of Uber in Ljubljana a pure scam. “Anyone who would like to become a driver in this system, like what we have seen the Americans and the British do, will be disappointed. This is a false relaxation of competition from the transport power clique. You need Janković’s permission, so only existing taxi drivers – like Jefim and company – will be allowed to drive,” he added.
Both Lahovnik and Hojs made it clear with their comments that the arrival of Uber in Slovenia will not bring what they want, i.e. competition and a reduction in taxi fares. The digitalisation of ordering a ride, with an emphasis on cashless payment and the possibility to rate drivers, are, therefore, apparently the only innovations that Uber has brought with its arrival. This is why we probably shouldn’t really be surprised that the taxi drivers’ union has not reacted as strongly to the arrival of Uber as they have in the past, specifically during the Janša government.
A. H.
