The remunerated transport sector of people is not profitable in Brussels but survives

While the Brussels Minister-President, Rudi Vervoort (PS), communicated on a preliminary draft taxi plan last Thursday, the parliamentarians participating in the Internal Affairs committee were able to benefit from a study by the Deloitte on transport on Tuesday on transportpaid.If the presentation was rather an observation, major political questions arise for the future regional plan.

Deloitte had been mandated by Brussels Mobility in 2019 in order to execute a precise analysis of the remunerated transport sector of people, in other words that of taxis but also LVC (car rental with driver).This study, it was claimed by several deputies in order to be able to analyze the future taxi plan expected for more than 7 years, under an objective magnifying glass.

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The study was therefore conducted before the health crisis.For some, this data means that advanced figures would no longer be correct but this study has the merit of existing and laying bases.

A limited number of vehicles

You should know that in the Brussels region, the number of taxis is limited by a system of numerus clausus via licenses.There are 1,300.These can give way and sometimes buy very expensive.Vehicles are on average driven by two drivers, which sets up the number of workers in the taxi sector at 2,057.84% of licenses are held by companies with only one car and only 2.3% concern companies with more than 10 vehicles.60% of drivers are salaried and perform 11 -hour services.Since 2013, the number of taxi drivers has decreased by almost 10%.

According to Deloitte, many question the profitability of the profession but also working conditions.The profession is struggling to attract new candidates and most workers believe that this represents only a stint in their careers.The study does not speak of the feminization of the profession which is almost nonexistent.

Not enough vehicle for PMRs

Today, we consider that 30% of the Brussels population is a person with reduced mobility.By definition, this category could be a large taxi consumer.However, only 97 taxis can accommodate a passenger in a wheelchair and the latter are distributed in 7 telephone plants.Difficult therefore to offer a service really meeting the needs of customers.For Deloitte, this category of vehicles should be developed.

The thorny question of the LVC

Next to traditional taxis, we obviously find the LVC.These are not only Uber or Heetch platforms but also luxury or ceremonial transport.If the number of licenses for these last two categories has not increased, that for luxury or mini-bus transport in which the platforms are registered, exploded.Between 2013 and 2019, the number of cars increased by 400%.Licenses went from 68 to 775.For candidates for transporting people, it is easier to access these non -capped licenses and especially without access to the profession.Being a Uber driver becomes 32% of workers an additional income.

The price of the race

For conventional taxis, the average amount of a race is 11 euros.This includes the fixed care price, the possible expectation, pricing according to the area and the number of kilometers traveled.

On average, a driver who works 11 hours roll 120 kilometers, only half of which is occupied by a passenger.In addition, between 2013 and 2019, the 5 km journey time has lengthened.We went from 12 to 18 minutes on average.Deloitte has projected a driver's income.His daily revenues would rise to 150 euros but only 36% would return to him, the rest going to the telephone center or to the employer and covers the costs.This means that he earns 1,086.50 euros per month.In reality, it is 1,600 euros that come back to it because it is the minimum wage that was negotiated with the sector.

Deloitte also analyzed the costs of telephone power plants which only dispatched the request, as well as the costs of taxi companies.If the power plants are doing financially, the companies are not profitable.The cost for a vehicle is 84,845 euros per year.If we take what a driver reports, that means that the loss is 12,410 euros per vehicle per year.A driver should bring in 250 euros for the service to be profitable.

For several deputies present during the presentation, the question arises of the survival of the sector.How can an activity last if it is structurally in deficit?

Undervalued black work

So there is a trick called black work.Deloitte estimates that it is 5% in his study.However, even with these 5%, the sector remains in deficit."It is not possible that we are at this level," retorts Liberal MP David Weytsman."In addition, profitability decreases over time between increasing traffic congestion and the arrival of platforms.Something is not going in the system.»

Unfortable competition from LVCs?

Deloitte clearly raises the question of the profitability of systems like Uber.International society recognizes that it is still not profitable.Deloitte specialists did not have access to algorithms that calculate the price of a race according to demand and time.Commercial secret.Thus, this can vary sharply.Some drivers would not hesitate to disconnect if the demand is too strong to increase the price a little.But beware of the elasticity offer/request.

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An Uber driver can earn 700 euros per month if he drives during the day, during the week, but 2,000 euros if he travels the city in the evening and the weekend.The flexibility of schedules as well as fluctuating prices are seen as advantages for some but as unfair competition for others.However, despite flexibility, neither Uber nor Heetch gives off.

What future for the sector?

Once the decoration is planted, the researchers from Deloitte wanted to explain how the paid transport sector of people can be developed.The Brussels Region, a priori, wishes to maintain the numerus clausus.For a while, we were talking about 5,000 licenses, now rather 2,000.In reality, it all depends on the scenarios.

In the long term, it is not certain that this sector is attractive.Indeed, if the Brussels Region pursues its investment policy in public transport, the taxi becomes less attractive.Ditto for the use of shared car.MAAS (Mobility as a Service) applications as in developing the STIB and which gives the user the possibility of reserving a scooter, buying a train ticket or taking a shared car in two clicks, does not necessarily encourageto take an individual taxi.

And in the future, by 2035, Deloitte also bets on the development of autonomous vehicle.If the car can transport us everywhere but without a driver, what will be the consequences for employment?

Currently, Brussels has 1.35 taxi per 100,000 inhabitants.In Paris, it's 5.56 and Berlin, 2,36.Our capital cannot be compared to these cities but rather in Hamburg, it is in any case the choice of Deloitte.For the study, it would therefore be just to remove the numerus clausus with a transition period but it does not say how to increase the demand for transport.

“On a bien compris que les réponses sont politiques», ajoute le député Jamal Ikazban (PS)."However, the study does not sufficiently approach the points concerning the social status of drivers and the impact of platforms.We do not know what is the impact of licenses in Flanders and Wallonia.We are in the description and very few tracks are offered.»

At the end of the session, the president, Guy Vanhengel (Open VLD) had to show a little authority because the questions of the deputies were numerous.Only, the political debate only takes place when the Minister-President, Rudi Vervoort, will come to present his taxi plan in the coming weeks.

Vanessa Lhuillier - Photo: Belga/Dirk Waem