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The UBER law

The controversial law that regulates the activity of the transport companies such as Uber, Cabify or Taxify was published on 10 August (Law 45/2018), after the first version being vetoed by the President of the Republic, in April of this year.

Indeed, the law known as Uber’s Law establishes, for the first time, a legal regime applicable to the activity of individual and remunerated passenger transport in uncharacterized vehicles from an electronic platform, abbreviated to “activity of TVDE”.

The “Uber Law” will enter into force on the 1st November, so the development of the TVDE’s activity by electronic platforms operators, such as UBER, Cabify or Taxify, will have to comply with the conditions established therein.

Electronic Platforms

Electronic platforms are electronic infrastructures owned or operated by legal entities which provide, according to their own business model, the intermediation service between users and TVDE’s operators, following a request made by a user on the platform, through a digital application. The access to the activity is also subject to licensing by the Institute of Mobility and Transport (IMT) and the operators of the electronic platforms are jointly liable before the users for the full and timely compliance of the contact.

The Operators of TVDE

The beginning of the activity as a TVDE’s operator is subject to obtaining a license, which may be requested electronically before the IMT. The IMT should decide within a period of 30 days; if this does not happen, the request is considered tacitly deferred.

The TVDE’s drivers

There are several cumulative requirements that drivers have to observe, among which we highlight:

  • The drivers must hold a license for more than three years for category B with inscription for group 2;
  • They must have completed a road training course for drivers, valid for a period of 5 years. After completing this course, the driver can request the IMT a TVDE’s driver certificate which will be valid for 5 years. This certificate grants a unique TVDE’s driver registration number, allowing its identification in the various electronic platforms.
  • They must hold a TVDE’s driver’s license issued by IMT. In addition, a TVDE’s driver must have entered into a written contract with the TVDE’s operator company, to which Article 12 of the Labour Code, regarding the presumption of existence of an employment contract, will apply. The drivers allocated to the TVDE service are prohibited from operating vehicles for more than 10 hours by reference to a total period of 24 hours, regardless of the number of transport platforms for which the driver is providing service. In this regard, the operators of the TVDE service are required to establish the necessary mechanisms to ensure that the maximum hours during which a driver operates is not exceeded.

Vehicles

The vehicles assigned to the TVDE service are only allowed to pick up passengers who have reserved the transport in the electronic platform. They are not allowed to accept passengers at a hailing request, to pick up passengers from taxi stands, or to ride on bus lanes. In addition, the transport of passengers with reduced mobility must be ensured by the operating company and the waiting time for the platform user, in these cases, cannot exceed 15 minutes.

It is mandatory that the vehicles assigned to the TVDE service:

  • Are enrolled in transport platforms;
  • Have an age of no more than 7 years after the first plate registration;
  • Have a civil liability and personal accident insurance, which includes the transported passengers and their losses;
  • Have no external identification marks.

The content of this information does not constitute any specific legal advice; the latter can only be given when faced with a specific case. Please contact us for any further clarification or information deemed necessary in what concerns the application of the law.

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