Economy

Driver’s flight drives TVDE prices skyrocketing

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More than half of drivers quit their jobs at Uber, Bolt and Free Now during the pandemic and never returned, unlike customers.

More patience and more balance on the map. Those who have had to call a car using the app in recent months have already noticed that using the Uber, Bolt and Free Now platforms is more difficult.

The scenario will continue in the coming months, with more and more drivers abandoning the Passenger Carriage of Uncharacterized Vehicle (TVDE) activities. The revision of the law will take place only after the adoption of a new constitution by the Assembly of the Republic.

“Before covid, the car was parked at every corner and was always at the client’s door. Due to the limited and lack of demand, there were many refusals of drivers and bankruptcies of partner companies. This created a supply deficit, ”he explains. JN / Dinheiro Vivo is the representative of the TVDE Drivers’ Union.

According to the numbers, “of the approximately 30,000 certified drivers, most of them had to look for alternatives because they could not afford the fuel and maintenance costs,” which in TVDE’s business are on the side of drivers and companies, the leader adds. the union of urban road workers in Portugal Fernando Fidalgo.

Even though they are not driving, TVDE driver certified drivers can return to work at any time. The document is valid for five years from the date of its issue by the Institute for Mobility and Transport (IMT).

The lack of supply cannot respond to the rise in demand that has occurred since Easter this year. Whoever calls the car must now wait at least five minutes and pay more for the ride, especially during rush hours. The platforms have tried to lower tariffs with cheaper options in the metropolitan areas of Lisbon and Porto.

Dynamic bid doubles the price

However, in this situation, the client has to wait even longer: fewer and fewer drivers are willing to pay so little for a trip – platforms save 20% to 25% of the price in commissions, excluding travel costs.

“Low fares are one of the reasons drivers leave,” defended Antonio Fernández.

Passengers are penalized even more if they need to use TVDE on Thursday, Friday and Saturday nights. Platforms use a dynamic fare to respond to peak demand and can, at the most, double the price of a trip over the normal cost.

JN / Dinheiro Vivo, Uber and Free Now suggest they have had to activate their dynamic plan more often in recent months.

“We noticed that the recovery in demand was faster than on the supply side, which means that in many cases the dynamic rate is active to balance supply and demand and ensure the service is available 24 hours a day,” cites an official Uber source.

Free Now takes the same message: “As demand greatly outstrips supply, it will eventually become increasingly dominated by dynamic tariffs that contribute to this overall feeling of price increases.”

Bolt says it has a “development team working daily to improve the pricing algorithm and create more cost-effective and sustainable options” for customers.

There are about 30 thousand TVDE driver certifications. The document is valid for five years from the date of issue of IMT. However, more than half of the professionals are not currently driving.

The number of new TVDE companies fell 73% in the first 11 months of this year, compared to the same period in 2019. Informa D&B data show the greatest disinterest in this activity.

Rules in 2018

After three years of disputes, in November 2018, the transport platforms were settled under the auspices of the Ministry of Environment and Climate.

Report

Law 45/2018 specifies that after three years, it is necessary to evaluate and even revise the law following an IMT report submitted to the Office of Mobility and Transport (AMT). The document has not yet been delivered, the department said.

New parliament

If amendments are made to the law, they must be approved by the new Constitution of the Assembly of the Republic, which is the result of the legislative acts of January 30.

More inspection

However, revising the law may not be enough. This activity “requires a higher level of scrutiny,” defends new AMT leader Ana Paula Vitorino.

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