How much is a Taxi License

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In Paris, taxi fares are stabilising.

Taxis can work with different statuses: Independent drivers: 58% of taxi riders in Paris[1]; they hold a driving licence; tenants: 28% of taxi riders in Paris; they rent their driving licences from a taxi firm; co-operative taxis: 7% of taxi riders in Paris; they hold stakes in a co-operative to which they are affiliated and the co-operative holds the driving licences; employees:

6% of taxi riders in Paris; they do not have a driving licence. In order to become an independent taxi operator, it is necessary to have a driving licence. It is possible to obtain a license in two different ways: free of charge, registration on a taxi office waitinglist; it will take an estimated 14 years to obtain a license through this canal.

Purchase of a driver's license from another rider who chose to go into retirement at a free street rate. Licences that have been supplied free of charge since 2014 may not be resold on this aftermarket. Of those who did not have a driving licence, 50% said they did not have the money to buy a licence and 30% considered the licence to be an unsafe return.

Selfemployment seems to be a second step in the working career of a taxi operator; most operators begin by hiring a driving licence or as an employee of a taxi business. These averages hide two different strategies: those who purchased their licence (85% of self-employed drivers) did so after 2 years. Six years in the taxi business.

Persons waiting for a free licence (15% of self-employed drivers) worked for 14. Reason for this second policy was to tolerate a low level of earnings for a long term, either as an employer or as a licensee, in order to obtain a precious property to be sold in retirement.

Since free licences issued after 2014 cannot be resold on the aftermarket, this policy may become less appealing and may lead to a reduction in the lease rate. Both of the following charts show all license deals recorded by the Paris PD between 1995 and August 2017. While the first chart shows nominally priced items, the second shows inflation-adjusted items; the EUR has been maintained at the August 2017 levels.

Monthly and monthly prices are used for the transaction, and the circle sizes are in proportion to the number of completed trades. Over 18 years, the face value of the license rose by 275 percent from an annual 86,000 ? in 1995 to 234,000 ? in 2013. A rise between 1995 and 2001, when the licence fee amounted to 150,000; A stabilisation period between 2001 and 2005, when the fee was just over 150,000; A fall in prices in 2008, (the year of a nationwide economical recovery survey, which noted that the number of taxis should be boosted and the year of the financial crises began), which brought the fee down to 150,000;

A period of rise between 2009 and 2013, when the cost was close to 250,000; a slight fall in 2014, the year of the Thévenoud review, in which the will of the Italian authorities to modify taxi rules was reflected, but also the annual transport system such as Über was introduced on the France transport system. Some of this decline was made up at the beginning of 2015; a significant decline in the license fee in 2015 and 2016 with a fee of 120,000 at the end of 2016; a slight recovery in 2017 with a stabilization of 140,000 in the spring of 2017 (the last three-month average was 139,000 in June, 142,000 in July and 141,000 in August).

In the following chart, the same information is shown in different ways: for each of the quarters, the number of units sold is shown by a bar chart (left scale) and the mean selling price by a bar chart (right scale). The chart shows that with falling pricing in 2015-2016, the number of license sold also declined, indicating that license vendors were awaiting the opportunity to see how the markets would develop.

Is this a stabilizing signal for a ripe state of the economy? We can interpret the decline in license fees in 2015 and 2016 and the slight recovery in 2017 as follows: Competitive effects from new mobile applications had an impact on license pricing, which rose strongly before the launch of these new products (+42% between 2009 and 2013, taking price increases into account).

Falling prices from 240,000 to 124,000 at the end of 2016 are a clear indication that the commercial rental associated with taxi licences has lost importance. Following the 2017 recovery, taxi charges will be set at levels approaching those of the early 2000s, demonstrating that the taxi business still has some attractiveness and that taxi operators expect their incomes to be significant enough to refund their outlays.

Effects of the new free licences, which cannot be marketed, appear to be restricted in the used licences market: the number of newly granted licences is insufficient to meet the needs of newcomers. The stabilisation of prices could indicate that the privately owned transport sector is mature: G7, the principal taxi operator, has agreed to take over its Taxis Bleus group.

To have two marks was one way of not acting as a single player on the reservations supermarket. The new rules for on-line portals, with the harmonisation of the test for riders working for ridesailing applications with the test for taxi riders, result in a status convergence between taxi riders and rental carers.

Although this is by no means as strict as the strict rules resulting from the restricted and very statistical number of taxi charges available, it will to some degree guarantee the stable number of chauffeurs on the personal transport sector.