New regulatory framework for taxis and ride-hailing services with fines of up to 6.000 euros in the Valencian Community

The Valencian Government has approved a new mobility decree law establishing a regulatory framework for the taxi and ride-hailing sectors in the Valencian Community, with the aim of ensuring coexistence and strengthening legal certainty following several court rulings. This legislation, which amends previous decrees, introduces a new sanctions regime and relaxes the conditions for both services, directly impacting mobility in municipalities.

Adapted taxi in Dénia affected by the new regulations of the Consell

New framework for the coexistence of taxis and ride-hailing services

The new regulations come after a dialogue with representatives from both sectors and aim to strengthen legal certainty in the Valencian Community. Among the key measures, the Consell establishes a temporary suspension, for a maximum of two yearsThe suspension does not apply to the granting of new taxi licenses in joint service areas or new state-level VTC (private hire vehicle) licenses. However, it will not affect taxi licenses intended to increase the number of vehicles adapted for people with reduced mobility, which will be permanently assigned.

Harsher penalties and greater powers for local councils

One of the main new features is the introduction of a specific penalty system to ensure compliance with the conditions for urban ride-hailing services. Very serious infractions may be penalized with up to 6.000 Euros and contemplate the immediate immobilization of the vehicle.

Among the punishable offenses are soliciting customers on public roads without prior booking by ride-hailing vehicles (VTCs) or driving around looking for passengers. Furthermore, municipalities are authorized to initiate, investigate, and resolve sanctioning procedures for these infractions, as well as to collect the fines.

New developments for the taxi sector

The decree includes several modifications for the taxi sector:

• The maximum number of authorizations that a single individual can hold is increased to a maximum of three ordinary authorizations and to five if they are linked to vehicles adapted for people with reduced mobility. This measure seeks to encourage the hiring of salaried drivers and develop the business network of the sector, improving service to users.
• The process for issuing new taxi licenses is made more flexible, while maintaining the overall ratio of one authorization per thousand inhabitantsbut allowing new licenses if there is demand or a need to increase adapted vehicles.
• The requirement of full and exclusive dedication is eliminated, although the incompatibility between the activity of taxi driver and ownership or paid driving in VTC services is maintained.
• The transfer of authorizations is regulated so that heirs can maintain and transfer the license, even if they are minors, by designating a representative.
• The regulation allows for the termination of joint service provision areas at the request of any of the participating municipalities, reinforcing municipal autonomy. Furthermore, municipalities with more than 200.000 inhabitants or with more than 200 taxis They may decide not to integrate into a joint service area.

Significant changes for ride-hailing services

Regarding VTCs, the decree provisionally authorizes state-licensed companies based in the Valencian Community to provide urban transport services for a maximum period of two years or even the preparation of a technical study on mobility.

The new regulations eliminate the limitation that restricted ride-hailing services exclusively to intercity routes. Likewise, the contracting conditions are modified to improve user availability, removing the requirement of 15 minute wait to hire the service.