Madrid's High Court Orders Release of 2,595 VTC Licenses to Cabify
The ruling follows a protracted legal battle over driver licenses, impacting public transport dynamics in the region.
The Superior Court of Justice of Madrid (TSJM) has ruled in favor of Cabify, a prominent ride-sharing company, in its ongoing dispute with the Community of Madrid concerning the delivery of 2,595 licenses for rental vehicles with drivers (VTC).
The court's decision, delivered in three separate rulings, asserts Cabify's entitlement to receive a total of 2,595 VTC licenses, corresponding to three requests for 1,000 licenses each, originally submitted in April 2018. This request was made just prior to the implementation of a decree law by the Ministry of Transport that limited the ratio of VTC licenses to taxi licenses to one VTC for every 30 taxis.
Despite Cabify submitting a total of 7,706 license requests, the Community of Madrid denied these applications while adhering to the recently enforced regulations.
In response, Cabify initiated legal proceedings which culminated in a Supreme Court ruling in early 2024. The Supreme Court partially upheld Cabify's appeals, directing the Community of Madrid to renew administrative processes in accordance with the legal standards applicable at the time Cabify filed its requests.
The Supreme Court determined that the one-to-thirty ratio regulation was not in effect at the time of Cabify’s application and noted that this limitation had been challenged by the Court of Justice of the European Union (CJEU), which asserted in 2023 that such restrictions could only be justified under 'imperative reasons of general interest'.
Despite the Supreme Court's directive, the Community of Madrid denied the licenses again in July 2024, citing issues with the documentation of some vehicles, and indicating that Cabify had submitted a single request for 1,000 licenses rather than separate requests for each, leading to a rejection of the entire application.
In response, Cabify filed execution incidents with the TSJM, which, in rulings dated March 17, clarified that the Supreme Court did not interpret the issue as 'all or nothing'.
The TSJM concluded that if certain vehicles meet the required standards, the Community should grant the corresponding licenses.
Consequently, the rulings annulled part of the Community’s denials and recognized Cabify's rights to 999, 884, and 712 VTC authorizations, respectively.
The TSJM's rulings do not address the status of the remaining vehicles, as Cabify has also initiated a separate appeal against the denial of those licenses.
In light of these developments, Cabify has expressed its willingness to collaborate with the regional government to enhance mobility within Madrid.
The company stated that the new driver vehicles would play a crucial role in achieving shared goals of decarbonizing mobility and ensuring accessible and inclusive transportation for all residents of Madrid, irrespective of their background or location.
According to a study conducted by Transyt-UPM, it is estimated that Madrid requires between 12,000 and 18,000 taxis and VTCs to adequately meet the mobility demands of both residents and tourists.
Currently, the number of taxis and VTCs per 100 inhabitants in Madrid is reported to be three times lower than in other European cities, such as London or Paris.
The court's decision, delivered in three separate rulings, asserts Cabify's entitlement to receive a total of 2,595 VTC licenses, corresponding to three requests for 1,000 licenses each, originally submitted in April 2018. This request was made just prior to the implementation of a decree law by the Ministry of Transport that limited the ratio of VTC licenses to taxi licenses to one VTC for every 30 taxis.
Despite Cabify submitting a total of 7,706 license requests, the Community of Madrid denied these applications while adhering to the recently enforced regulations.
In response, Cabify initiated legal proceedings which culminated in a Supreme Court ruling in early 2024. The Supreme Court partially upheld Cabify's appeals, directing the Community of Madrid to renew administrative processes in accordance with the legal standards applicable at the time Cabify filed its requests.
The Supreme Court determined that the one-to-thirty ratio regulation was not in effect at the time of Cabify’s application and noted that this limitation had been challenged by the Court of Justice of the European Union (CJEU), which asserted in 2023 that such restrictions could only be justified under 'imperative reasons of general interest'.
Despite the Supreme Court's directive, the Community of Madrid denied the licenses again in July 2024, citing issues with the documentation of some vehicles, and indicating that Cabify had submitted a single request for 1,000 licenses rather than separate requests for each, leading to a rejection of the entire application.
In response, Cabify filed execution incidents with the TSJM, which, in rulings dated March 17, clarified that the Supreme Court did not interpret the issue as 'all or nothing'.
The TSJM concluded that if certain vehicles meet the required standards, the Community should grant the corresponding licenses.
Consequently, the rulings annulled part of the Community’s denials and recognized Cabify's rights to 999, 884, and 712 VTC authorizations, respectively.
The TSJM's rulings do not address the status of the remaining vehicles, as Cabify has also initiated a separate appeal against the denial of those licenses.
In light of these developments, Cabify has expressed its willingness to collaborate with the regional government to enhance mobility within Madrid.
The company stated that the new driver vehicles would play a crucial role in achieving shared goals of decarbonizing mobility and ensuring accessible and inclusive transportation for all residents of Madrid, irrespective of their background or location.
According to a study conducted by Transyt-UPM, it is estimated that Madrid requires between 12,000 and 18,000 taxis and VTCs to adequately meet the mobility demands of both residents and tourists.
Currently, the number of taxis and VTCs per 100 inhabitants in Madrid is reported to be three times lower than in other European cities, such as London or Paris.
Translation:
Translated by AI
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