More than 500 Portuguese taxi drivers have filed requests to obtain licences that would allow them to operate both traditional cabs and on‑demand ride‑hailing services (TVDE), a development that is being watched closely by policymakers, industry groups and commuters.
Background
In Portugal, the taxi market has long been governed by a strict licensing regime overseen by the Institute for Mobility and Transport (IMT). Since 2014, the country has also regulated Transportes de Veículos Deslocados a Empréstimo (TVDE) – the legal framework for app‑based ride‑hailing platforms such as Uber, Bolt and Free Now. TVDE operators must meet separate safety, insurance and driver‑qualification standards, creating a parallel but distinct market.
Drivers operating under the traditional taxi model have faced mounting competition from TVDE services, which often attract riders with lower fares and the convenience of smartphone booking. The growing number of applications for dual licences reflects a desire among taxi operators to diversify income streams and retain relevance in a changing mobility landscape.
Potential Impact
If the applications are approved, the affected drivers would be able to offer rides through both street‑hailing and app‑based platforms, potentially blurring the lines between the two sectors. Proponents argue that dual licensing could increase driver earnings, improve service coverage in less‑served areas, and give consumers more choice. Critics, however, warn that it may undermine the protective intent of the separate licensing regimes and could lead to regulatory loopholes.
The issue has quickly risen to become Portugal’s top domestic story, prompting statements from the taxi association, which says its members are seeking “greater flexibility” to survive in a market where demand is increasingly shifting toward digital platforms. At the same time, representatives of TVDE companies have expressed concern that allowing traditional taxis to operate on their own apps could distort competition.
“More than 500 taxi drivers have applied to also operate as TVDE providers.”
The IMT has not yet indicated a timeline for reviewing the bulk of the applications, but it is expected to assess each case against existing safety and insurance requirements. The outcome could set a precedent for future policy decisions regarding the integration of legacy transport services with emerging mobility technologies.
Analysts note that the debate mirrors broader European discussions about how to balance regulation, innovation and the livelihoods of drivers across the continent. Portugal’s experience may therefore serve as a reference point for other nations grappling with the coexistence of regulated taxis and rapidly expanding ride‑hailing ecosystems.
As the review process unfolds, the Portuguese government faces pressure to provide clarity on the legal framework governing dual operation, while consumers await potential benefits such as increased availability and competitive pricing.
