Competition heats up for taxi business

Mobile apps are increasing competition for taxi businesses. Despite protests from taxi drivers across Europe, the phenomenon is here to stay. Uber is one such app. It searches an area for private drivers who are close to people who need rides.

Taxi drivers are speaking out against the practice, but the reality is that weak competition and regulations can actually improve their business, allow them to create their own platforms and make deals for their clients. Commissioner Neelie Kroes says that the sector should adapt to new technologies, and she is right. Meanwhile, the app owners need to be paying taxes on the services that they offer passengers and taxi drivers. How and when that will happen is up in the air.