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Principles for the Regulation of For-Hire Road Transport Passenger Services

Corporate Partnership Board

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Principles for the Regulation of For-Hire Road Transport Passenger Services - Chair's Summary

Summary

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The rapid spread of new transportation network services that offer remunerated transport or ride-sharing services using novel network-based technologies underscores their tremendous popularity. At the same time, these services have taken many local authorities by surprise as they do not fall under existing regulatory structures. Looking to the future, new mobility service configurations will continue to develop and novel business models will emerge bringing together actors that are not currently present in passenger transport markets.

The popularity of innovative mobility services indicates that they will no doubt be a permanent feature in many cities around the world. Accordingly, the regulatory framework in which they operate will have to evolve in order to balance the benefits conferred by innovation with societal objectives. At the same time, the regulatory environment for competing transport service providers (such as taxis and some forms of demand-responsive public transport) will also have to evolve to eliminate unnecessary and burdensome requirements as well as remove market distortions.

Participants in the workshop worked to identify a consensus set of principles for regulating for hire passenger transport markets, revisiting why it is that demand-responsive transport services are regulated in the first place and investigating if and where current regulatory frameworks must be adapted to account for recent service and technological innovations, towards a “first-principles” approach.