Minister for Mobility Yuriko Backes has introduced a draft bill aimed at overhauling Luxembourg’s taxi sector. The proposal, however, has been met with significant criticism from industry representatives, who argue that the legislation fails to address its core objectives.
The last major reform of the sector took place ten years ago and was intended to reduce fares – a goal that was ultimately not achieved. The new initiative seeks to correct those shortcomings. A central element of the plan is the gradual liberalisation of the market by 2030, which would remove the current cap on the number of taxi licences.
However, the Chamber of Skilled Trades and Crafts remains sceptical that the change will lead to lower prices. According to Gilles Walers, a drop in prices would only be possible if taxi occupancy rates increased. He argued that introducing more vehicles into the market would likely dilute occupancy, which could paradoxically drive fares up. “We don’t really understand the ministry’s reasoning”, Walers said, questioning how expanding the number of taxis could simultaneously lower prices. “None of this will lead to lower prices”, he added.
The draft law also introduces new rules for digital platforms such as Uber and Bolt, requiring them to obtain state accreditation to operate in Luxembourg. Among the conditions, platforms would need to set fares in advance and ensure that their drivers hold valid licences.
The Federation of Craftspeople has voiced separate concerns, cautioning that excessive competition could have unintended consequences. Christian Reuter, speaking for the federation, warned that the reform might encourage a mass shift toward self-employment among drivers. Drawing on examples from other countries, he noted that such trends have led to a surge in self-employed drivers, often in “highly precarious” conditions. “In some cases, people end up sleeping in their cars”, Reuter said, adding that these workers lose the protections afforded by labour law and collective bargaining agreements.
Beyond the content of the bill itself, sector representatives have expressed frustration over what they perceive as a lack of consultation. They note that a range of alternative proposals were submitted to the ministry, including the introduction of fare caps and connected taximeters to better monitor compliance with labour standards. None of these suggestions, they say, were incorporated into the final draft.
