Taxi Services vs. Virtual Transportation Companies (VTCs): Pricing, Legislation, Regulations... What Truly Sets Them Apart in 2025
since Monday, taxi drivers across France have been staging protests against a forthcoming government reform aimed at controlling health insurance costs for journeys performed by licensed drivers. This proposed legislation, set to come into effect in October, is the subject of the drivers' ire, having already sparked six previous demonstrations.
On Saturday, May 24, representatives from the taxi inter-union are scheduled to meet with the Minister of Transport in the presence of the Prime Minister. After five days of mobilization, the drivers have managed to secure a meeting with the Minister, François Bayrou, to discuss the proposed law. The legislation is intended to rein in the escalating costs of healthcare transportation, which recently reached €6.74 billion in 2024 – with €3.07 billion allocated for licensed taxis, marking a 45% increase since 2019.
The focus of the drivers' unrest is not limited to the proposed reform on health insurance costs. They are also bitterly opposing private hire vehicles (VTCs) associated with platforms such as Uber. Reports indicate that some Uber drivers have suffered verbal abuse and physical threats, with government spokesperson Sophie Primas condemning such attacks as "unacceptable." This ongoing rivalry between the traditional taxi service and app-based alternatives has a historical precedent. Taxi drivers have long accused VTCs of unfair competition and unlawful practices. In an attempt to restore peace, Transport Minister Philippe Tabarot has affirmed the intention to implement stricter controls over VTC drivers.
Tensions between taxis and VTCs remain high, despite their shared purpose. Although they perform similar roles, their working conditions and remuneration differ significantly. Taxi drivers must fulfill criteria such as possessing the appropriate driver's license, medical certification, first aid training, and a clean criminal record. After passing an exam, they can choose among three statuses – artisan, licensee, or employee. VTC drivers, by contrast, must have a driver's license valid for at least three years, possess a professional VTC card, and undergo an exam costing around €200. They may opt for either an individual enterprise or company status, allowing them to work with platforms like Uber.
Taxi fares in France are capped by law, consisting of a pick-up fee, a per-kilometer charge, and an hourly waiting rate. The minimum fare for all taxis nationwide is set at 8 euros, with supplements added in specific cases, such as night rides or trips near certain airports. In contrast, VTC drivers' revenues depend on the time, place, and frequency of their trips, the platform explaining that each journey encompasses a standard price based on time and distance traveled.
The government is currently engaged in a controversial reform set to impact medical transport services, which aroused widespread demonstrations by taxi drivers. Starting October 1, 2025, the way remuneration for these services is calculated is set to change, with a flat-rate charge and per-kilometer rate being introduced as part of a new structure. This change has been met with disapproval by licensed taxi drivers who view it as a threat to their livelihoods and fear that it will lead to a reduction in their incomes, especially given the growing presence and popularity of app-based services like Uber. The reforms are also perceived as unfairly favoring these newer services, exacerbating competition and potentially destabilizing the regulated taxi sector. With protests continuing and no immediate resolution in sight, the standoff between the French government and the taxi industry shows no signs of abating.
The taxi drivers' protests against the government reform extend beyond health insurance costs, as they are also contesting the increasing dominance of private hire vehicles (VTCs) movements such as Uber.
Furthermore, the disagreement over business competition between traditional taxi services and app-based alternatives, like Uber, has been a long-standing issue, with taxi drivers accusing VTCs of unfair and unlawful practices.
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