The Balearic Government has approved new regulations for taxis and VTCs on Friday, ahead of the Sunday expiration of a moratorium that froze around 10,000 licence applications in the Balearic Islands. This regulation provides the administration with a framework to control the surge in VTC licence requests, which "insist the territory is limited" and cannot absorb further demand. The law ties the granting of licences to mobility congestion and air quality standards, allowing refusals if certain thresholds are exceeded.
The Government emphasises that these measures will prevent an influx of private hire vehicles operating under platforms like Uber and Cabify but refrains from providing estimates on the sector's potential size. At present, there are 2,529 taxi licences and 739 active VTC authorisations across the archipelago.
After several court rulings struck down rules linking VTC licences directly to taxi ratios, the challenge was to establish an objective regulatory system that still curbs sector expansion. The Govern chose a methodology based on congestion and environmental indicators, consistent with the latest draft proposal. New licences won’t be issued when municipal or island-wide traffic congestion or annual limits on nitrogen dioxide, fine particulate matter, or ozone are exceeded, except for zero-emission vehicles.
The decree also stipulates requirements for service provision, including a minimum quota of adapted vehicles per municipality and prior booking obligations for VTCs. It clarifies what constitutes soliciting customers in public spaces and sets conduct rules for both taxi and VTC drivers.
With the moratorium ending, VTCs must operate on the island where their vehicle is registered. A transitional clause allows those already providing services to request a change of base, but unrestricted relocation between islands is no longer permitted.
Regarding taxis, the regulations specify conditions for establishing special joint service arrangements. The Government encourages inter-municipal cooperation to enhance service quality, particularly during peak tourism periods.