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Respuestas recibidas sin formulario I - II- III

Respuestas recibidas sin formulario I - II- III

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CNMC consultation - Sharing Economy<br />

Phase N2. Effects on markets and regulation of new models for service delivery -<br />

Deadline: January 13th, 2015<br />

Questions<br />

Do you agree with the description and characterization of the new service delivery models<br />

and of the “sharing economy”? Can you provide any additional characteristics? (max. 4000<br />

chars)<br />

Uber agrees with the broad thrust of the CNMC’s characterization of the new service delivery<br />

models. We will comment on some of the specifics, but the key element of this contribution is a<br />

discussion of the future of urban mobility services, which we believe the CNMC has not covered<br />

with significant depth. Uber expects a far greater demand for mobility services than is implicit in the<br />

consultation document and that has implications for future policy.<br />

Throughout this paper, we shall to refer to companies focu<strong>sin</strong>g on dispatching-like services u<strong>sin</strong>g<br />

mobile internet technologies as “Technology Network Companies” (TNCs).<br />

It is important to take into consideration that this kind of services are “Information Society Services”<br />

subject to Directives 98/34/EC and 2000/31/EC. As a consequence, restrictions on the provision of<br />

such services are severely limited by the EU legislation. A prior authorisation cannot be imposed<br />

on these services (Article 4 of Directive 2000/31/EC) and free movement of information society<br />

services from the Member State where the provider is established cannot be obstacles in the<br />

Member State where the service is provided (Article 3 of Directive 2000/31/EC, which exhaustively<br />

lists the derogations allowed).<br />

New, and more intense, competition between intermediaries<br />

With respect to the taxi and VTC industry, it is primarily the “information society service”<br />

(‘dispatching’) that is evolving quickly to the benefit of consumers.<br />

Dispatching involves the matching of drivers with requests for rides. No matching takes place when<br />

hailing a cab, or taking the first from a taxi rank, but human matching is undertaken at phone<br />

dispatch centres. Matching is a task that lends itself to computers and algorithms as they can do<br />

the job more effectively and more cheaply. The result is better for consumers, and for drivers as<br />

they are in the situation to provide their service more efficiently.<br />

As dispatching becomes more convenient, we expect its use to increase. As a result, Uber does<br />

not share the CNMC’s contention that there will be ‘reduction of intermediaries’ but we do agree<br />

that there will be a reduction in their ‘transaction costs’, and this will of course be to the benefit of<br />

consumers.<br />

Competition between intermediaries will in turn take on new dimensions - whereas traditionally the<br />

largest taxi firm inevitably offered the best average pickup times, competition today and tomorrow

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