Despite numerous obstacles, the company plans to expand its operations in Croatia.
Since the Transport Ministry declared that Uber was illegal in Croatia, Uber and similar business have to wait to see whether the working group whose establishment was announced by Transport Minister Oleg Butković will liberalize the market and create legal framework for them. In the meantime, Uber drivers can expect further inspections and penalties, reports Poslovni.hr on December 27, 2016.
Although Uber does not like to disclose such information, Davor Tremac, director of Uber for Croatia and the region, says there are a thousand drivers who have decided to work for Uber, and they have approximately 100,000 registered users. Tremac claims that Uber did not come to Croatia to steal anyone’s business, but to create new opportunities for consumers, which they already proved in many other cities in which they also operate. They are satisfied with the announcement about new legislation being adopted, and they already have specific proposals, following the example of countries such as Sweden, Lithuania and Estonia.
“Over a thousand drivers in Croatia, mostly in Zagreb, actively drive for Uber, and they are very satisfied with the interest of users. On the other hand, in Zagreb there are about 1,200 taxi drivers whose numbers in the last year did not fall. They themselves say that they have increased turnover and income. These figures demonstrate that Uber is not here to take anyone’s business, but to create an entirely new market. A similar situation occurred in other markets as well, such as London, which has kept the same number of taxis after Uber arrived with 25,000 drivers”, explains Tremac. He adds that analysis shows that Uber services are mostly used by people who did not previously used taxis, but drove their own cars. In order to avoid traffic jams and parking problems, they leave their cars at homes and use Uber.
Tremac explains that Uber does not have a uniform price list, but adjusts its prices according to supply and demand. “The legislation is vague, because it stipulates that the rules will be prescribed by local authorities, which have not done it. However, everything which is not forbidden is allowed”, says Tremac.
The Ministry is clear about its position. “We are solving this complex issue in cooperation with the Ministry of Interior and the Ministry of Finance, as well as in cooperation with local authorities”, explains the Ministry. They add that the competent inspection has established that Uber drivers perform taxi services in an inadequate way. “The majority of drivers who perform transport services through the Uber application do not meet the requirements of the law”, says the Ministry. Those who drive legally are probably regular taxi drivers who also “moonlight” driving for Uber.
“We propose to set forth the conditions which drivers will be obligated to meet, as well as to establish a register of Uber partners at the Ministry of Transport and link it with the Ministry of Finance, to make things more transparent”, says Tremac. Interestingly, although the company he leads in Croatia has been accused of doing illegal business, Tremac was recently appointed to the leadership of the American Chamber of Commerce in Croatia (AmCham).
The Ministry did not want to speculate whether and when the law could be amended. “The Ministry of Transport has initiated the establishment of a working group with the task to analyze the current legislation, in order to find the best legal solution. Our goal is to organize transport services in the best possible way, while establishing legal requirements for implementation of highest possible safety standards for all participants in road transport services”, concluded the Ministry.
