Uber’s X-factor
Uber will start a higher-cost service in Brussels in a bid to soften political opposition.
Uber will launch a more expensive service in Brussels in September as a part of a strategy to overcome resistance from legislators and taxi drivers, POLITICO has learned.
Under a premium offering known as UberX, the digital ride-sharing service is expanding its presence ahead of an expected legalization of Uber’s business model by the Brussels regional government.
At a private meeting Monday, Uber introduced the new model to drivers, giving them the option to register as licensed chauffeurs to qualify for a service already offered in cities like London and Paris.
The expansion comes amidst speculation that Uber would be phasing out UberPOP, a budget service that was used to introduce the car-sharing to Brussels. But a company spokesperson said they plan to introduce UberX alongside UberPOP.
“We’re not planning to suspend POP,” said Uber spokesperson Susanne Elias-Stulemeijer. “We’re always looking at launching new products and Brussels is not an exception.”
Paris, Italy and Berlin were forced to suspend their budget service under pressure from local taxi drivers and legislators, and instead offer UberX.
According to the Uber spokesperson, UberPOP is 40-50 percent cheaper than a taxi and UberX is 20-30 percent cheaper.
That means, however, that the new UberX service — while marketed on Uber’s application as ‘The Low Cost Uber” — will actually be a 50 percent price hike on the current offering.
However, in Stockholm, the only other city in the European Union to offer both services, UberX is about twice the price of UberPOP.
Drivers in Brussels were told they should plan for a launch in September at information sessions held earlier this week. Only drivers with cars less than seven years old and with a minimum of four doors are eligible.
In advance of the launch only weeks away, drivers must pass a test on knowledge of Belgian cities and relevant legislation, according to an application obtained by POLITICO. Drivers must also visit the ophthalmologist.
“I was at a meeting Monday with many other drivers,” one driver said, in reference to the legal tangles Uber has faced in Brussels. “We are interested to change from UberPOP because it is too complicated now.”
In 2014, a Brussels court ruled the ride-sharing service was illegal and mandated fining drivers €10,000 per passenger.
One driver, Gvanni Tiney, has been on a mission to register his fellow Uber drivers as licensed chauffeurs to encourage the launch of UberX.
“I have requested the license and they [Brussels government] will arrange that for me,” Tiney said.
“It will take four to six weeks because of the holidays,” he said, raising his eyebrows regarding Uber’s target of launch by September.
Uber executives also distributed talking points to drivers to help them promote and defend the legality, insurance and privacy of the service.
The packet, titled “10 truths about Uber,” has been making the rounds as they prepare for the expansion.
It includes a map of where Uber rides are taken across Brussels to argue that the service complements public transport.
Uber also argues in the documents that Brussels has a specific problem with parking which blocks traffic and creates a need for services like Uber to help reduce congestion.
Notably, Uber declared that it’s in favor of regulation, which could be seen as an admission that it has failed to get around the demands of regulators who have dogged the company across Europe.
“We are collaborating with politicians to build new rules,” the document states.
Antoine Sander contributed to this report