On Friday 8 January 2021, Luxembourg's Government Council adopted draft legislation amending the law of 5 July 2016 on the reform of taxi services.

One of the objectives of this taxi reform was to strengthen competition in the sector for the benefit of customers. Over the past four years, however, practice in the field has shown certain shortcomings in the sector. The aim of this new legislation is to remedy this situation.

In the same vein, rental cars with a driver have been included in the legislation, considering the fact that their service offer has always been similar to taxi services. At the current legislative level, the use of rental cars with a driver is only regulated by article 56bis of the Highway Code, with rules that are considered too imprecise in relation to the taxi sector, particularly with regard to infringements as well as essential rights for their clients.

The modifications envisaged compared to the existing legislation are as follows:

- abolition of geographic areas of validity: from now on, each taxi will be able to operate throughout the territory of the Grand Duchy;

- abolition of the limitation on the number of licences issued and the differentiation between ordinary licences and zero emissions licences: in this way, competition will become greater, which should have repercussions on the prices charged. This liberalisation is also expected to enable operators to better manage their vehicle fleet according to the economic situation of the market. With regard to environmental criteria, these are no longer judged solely on a single vehicle, but on the entire fleet of an operator in order to considerably reduce the CO2 emissions of taxis and rental cars with a driver between now and 2025.

- extension of the legal framework to rental cars with a driver: the introduction of rules identical to those applicable for taxis will make it possible to open up the sector to new players, while ensuring the application of essential labour rights and social security. In this context, the legislation makes a clear distinction between taxi and rental cars with a driver services. While taxis can be taken ad hoc, rental cars with a driver must be ordered in advance with detailed documentation including the dates and times of the reservation as well as the trip to be made.

- mandatory exam for taxi and rental car drivers: in order to improve the quality of service for taxi drivers, the legislation proposes the introduction of a compulsory examination for all new taxi drivers. Likewise, the maximum age for a driver is set at 70 years.

- adaptation of the different rights and duties: it is forbidden for a driver to smoke in his / her vehicle while on duty, even in the absence of a customer. Every driver has the obligation to accept payments by common bank cards. In the event of a breakdown of the card machine, the driver is obliged to bring the customer to an ATM without charging for this journey. Receipts can be transmitted in electronic form. The concept of the shortest route is replaced by that of the most economically advantageous route for the customer.

- vehicle display: the presentation of taxis remains mostly unchanged. Rental cars with a driver will have an identification plate on the front right and left sides of the vehicle. Advertising will also be permitted for rental cars with a driver as long as it does not allude in any form whatsoever to taxi services.

This legislation is set to enter into force on 1 January 2022.