VTC: Drivers Seek Guaranteed Minimum Income

Following a victory by VTC driver unions in mid-January, some of them now wish to obtain a new guaranteed minimum income.

Some VTC driver unions are calling for the establishment of a “guaranteed minimum income” to enable them to live decently from their profession. This follows an agreement in mid-January that increased their individual fare to €7.65 net, which was deemed insufficient by the VTC driver unions.

Indeed, for years they have faced tough competition from taxi drivers. The latter are regulated by law and have published rates in The Official Journal. These regulations exist to protect taxi drivers but also to allow users to estimate the price of their ride transparently.

The guaranteed minimum income would promote a minimum income threshold for VTC drivers. They would thus have fixed and variable elements in their earnings: hourly-kilometric rates (per kilometer traveled) would apply in addition to the minimum income.

However, implementing the guaranteed minimum income could cause logistical issues. VTC drivers use their phones to determine their geographical position. Therefore, this does not necessarily account for their actual speed or time spent in traffic jams, unlike taxis.

What impact for VTC users?

Users of VTC platforms (such as Uber, Lyft, or Bolt) will now pay a minimum of €7.65 for their trip, in addition to the fare set by the platforms. This is €5 more than the minimum base fee for taxis.

What is the difference between VTC and Taxis?

Taxi fares are based on hourly-kilometric rates, base charges, and maximum rates per hour. These are regulated by the government.

Unlike taxis, VTC drivers depend on platforms providing rides to users, who are free to set their own prices. Therefore, the increase in fares for individual trips has allowed drivers to secure a minimum income.

According to unions, this is not enough to offset the rising costs of vehicle maintenance and fuel prices, which have increased sharply since the end of December’s fuel discounts.

Read also: Mobilize Driver Solutions: an all-inclusive offer for taxis and VTC