Economy
Uber clarifies some issues over forced exit from Hungary
Uber Hungary Ltd. stressed that as a lawfully registered company operating according to local legislation it paid HUF 25 million in taxes in 2015. Compared to its revenues this is way more than what taxi companies recording turnover in the billions of forints pay in taxes.
Each of Uber’s drivers have official permits for passenger transport, which is a requirement for them to be able to use Uber’s platform. Each partner paid about HUF 200,000 each to obtain the necessary licences, bringing the state revenues to the tune of several hundreds of millions of forints. The licences were issued by the very same National Transportation Authority that issues taxi licences, the company reminded.
Uber said it was ready for discussion with policymakers from the very start. The company had officially requested meetings from ten different government politicians more than 50 times. Most of the officials work at the National Development Ministry. A total of two meetings took place with the ministry, both of which ended without a success, Uber said in its statement.
During these two negotiations Uber tried to explain policymakers why Uber is transparent and traceable and what tax revenues it generates for the state, and also how it protects consumer rights. It was also explained to the officials how Uber’s online payment system whitens the passenger transport industry which is not only cash-based but also infamous for abuses and overcharges. It also described how such services strengthen competition.
The company said the ministry adamantly refused to consider what Uber was saying and declined to take into consideration any of the company’s observations.
Uber claims it has asked authorities a number of times why they keep refusing to rethink and amend regulations if both the cabinet and the representative bodies of taxi companies consider it overly complex, acknowledging that it is anti-competitive and places excessive burdens on cabbies. The company also asked why is the government insisting on regulated tariffs while the deputy minister of the National Development Ministry admitted it was a flawed and inadequate tool. Uber claims that its questions have not been answered even once. What they received was rejection to give it a serious try to find a solution.
Regardless, Uber remains open to conducting further negotiations so that a construction solution can be found. It is asking the National Development Ministry to initiate consultations about the modification of the outdated regulation.
Each of Uber’s drivers have official permits for passenger transport, which is a requirement for them to be able to use Uber’s platform. Each partner paid about HUF 200,000 each to obtain the necessary licences, bringing the state revenues to the tune of several hundreds of millions of forints. The licences were issued by the very same National Transportation Authority that issues taxi licences, the company reminded.
Uber said it was ready for discussion with policymakers from the very start. The company had officially requested meetings from ten different government politicians more than 50 times. Most of the officials work at the National Development Ministry. A total of two meetings took place with the ministry, both of which ended without a success, Uber said in its statement.
During these two negotiations Uber tried to explain policymakers why Uber is transparent and traceable and what tax revenues it generates for the state, and also how it protects consumer rights. It was also explained to the officials how Uber’s online payment system whitens the passenger transport industry which is not only cash-based but also infamous for abuses and overcharges. It also described how such services strengthen competition.
The company said the ministry adamantly refused to consider what Uber was saying and declined to take into consideration any of the company’s observations.
Instead they insisted Uber should surrender its online tariff system, which is basically the “soul" of the platform and a key to transparency and reliability and make each Uber driver install a taxi meter, which is reminiscent of the last century and the 1990s. Policymakers also wanted to make cash payment available in Uber cars and to have them equipped with card readers, because - the ministry claimed - online payment would not do.
The company was also asked to raise its tariffs to a level defined and kept artificially high by the authorities. The startup company argues that most Budapest residents could not have afforded this tariff and it would have been the highest in Europe compared to the average wage.Uber claims it has asked authorities a number of times why they keep refusing to rethink and amend regulations if both the cabinet and the representative bodies of taxi companies consider it overly complex, acknowledging that it is anti-competitive and places excessive burdens on cabbies. The company also asked why is the government insisting on regulated tariffs while the deputy minister of the National Development Ministry admitted it was a flawed and inadequate tool. Uber claims that its questions have not been answered even once. What they received was rejection to give it a serious try to find a solution.
Regardless, Uber remains open to conducting further negotiations so that a construction solution can be found. It is asking the National Development Ministry to initiate consultations about the modification of the outdated regulation.
