BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

Estonia Embraces Uber and Taxify As First European Country To Legalize And Regulate Ride-Sharing

This article is more than 8 years old.

It would be fair to say that traditional London and Parisian taxi drivers are not particular fans of the sharing economy. There have been violent protests in both cities to protect their vocations against the disruption of Uber to their business.

In London, Black Cab drivers have to endure at least three years learning the ‘Knowledge’ an excruciating test of the city’s streets, nooks and crannies. It is no surprise they are opposed to Uber drivers ‘taking their jobs’ when Uber drivers can do so immediately without any knowledge of ‘the knowledge’.

Parisian drivers have been even more virulent in their rejection of such disruption. Earlier this year in January, more than 2,000 taxi-drivers across France, not just in Paris, led to violent protests.

This followed events in June last year when the US singer Courtney Love was caught, and clearly scared, when she tweeted ‘Got chased by a mob of taxi drivers who threw rocks’ when she finally arrived safely at the city’s Charles De Gaulle airport.

But while London and Paris are reactionary when it comes to non-traditional taxi services, other European countries are keen to embrace new ideas as a way of proving their technology credentials and hoping to attract consequent investment in their startup ecosystem.

One particular country is the Baltic republic of Estonia, a country of only 1.3 million, but one that has been revolutionary in its pursuit of the Technology Dollar. Not only did it launch an e-citizenship initiative in 2014 and digitise its Government documents while others were still sending faxes, it is also likely to be the first European country to regulate and legalize ride-sharing services such as Uber, and its local and more popular taxi app, Taxify

Talllin is at the center of Estonia's technology revolution. Credit: Dennis Jarvis

Support comes from the highest level as demonstrated by the Estonian Prime Minister last week speaking on the 98th anniversary of the Estonian Republican speech.

"Wouldn't it be reasonable at a time when a large part of the world is finding protectionist reasons to prohibit the sharing economy if we, Estonia, would be the first country to welcome Uber, Taxify and Airbnb?

"These business models do not just mean better competition and better service levels, but they may also become a part of the solution to Estonia's sparse population issue, and incentivize more people to become entrepreneurs”, said Taavi Rõivas, Estonian Prime Minister.

The process is well-advanced. Last week a meeting was held at the Estonian Parliament to initiate amendments to the country’s transport act. If approved, the amendment will be the first of a kind in Europe, with ratification of the amendment expected in weeks, rather than months.

The proposed amendments confirmed that private individuals can provide transportation services as long as certain conditions are met. These include provisions that all bookings are done electronically and service clients can estimate their trip price before the trip.

This will be great news to local company Taxify, that since its launch in the summer of 2013 has seen the company become the biggest ride-booking app in Estonia and the surrounding Baltic States of Latvia and Lithuania.

"At Taxify, we’re proud that we were part of the hearing and provided helpful input for the parliament members and the public to assess the viability of the amendment", said Markus Villig, CEO Taxify.

It is easy to understand the strategy of Estonia's government and local entrepreneurs such as Villig, piggybacking on the first wave of taxi-driving even if those business models have lasted for centuries.

While the taxi-drivers of London, Paris and other European cities set fire to the metaphorical looms of a previous revolution by barricading roads and threatening rock stars, Estonia's pioneering legislation is likely to be followed by many more European counties.

It would appear that the UK and France are unlikely to be in the vanguard of that particular process, happy to push back the waves like a certain European King Canute who thought he could beat back the sea by commanding it to do so. Naturally, he failed.

Check out my website