The Baltic country is ‘looking for a solution instead of prohibiting a new form of business,’ President Ilves says.
In what Estonia claims as a European first, Uber and similar ride-sharing services are now officially regulated in the country and can legally compete with traditional taxis.
Under the law approved by parliament last week, drivers can provide “negotiated passenger transport” services in vehicles with up to nine seats, but only electronically, not by picking up fares on the street, New Europe reported.
The law covers paid car services by online providers such as Uber, Hopp, Wisemile, and Estonia’s own Taxify, and sets Estonia off from other European countries that have taken a more combative approach to the popular services.
“Estonia could become one of the first EU countries – perhaps even the pioneer country – to regulate ride-sharing,” said the bill’s author, parliamentarian Kalle Palling.
“We aim to keep our legal environment such that it will enable the people to benefit as much as possible from the new economy – that’s why it is necessary to respond quickly and regulate ride-sharing in Estonia,” he said.
Estonia is already working with Uber to test a system that automatically reports drivers’ earnings to the tax authorities. Some Uber drivers have reportedly quit in protest, but overall, their number has grown substantially since Uber came to Estonia in mid-2015, AFP reported.
Technological progress has been the engine of Estonia’s economic growth over the past 25 years. The country, which has even promoted itself as “e-stonia,” prides itself as a pioneer in e-government and a regional tech startup giant.
“But above all, the robust ICT sector of the nation (6.8 percent of the economy) has benefitted from the full digitalization of government. Local companies have developed the wide range of services offered by the public sector (e-health, smart grids, e-tax, etc.),” EurActiv says, adding, “This cooperative model has made Estonia a global reference in e-government.”
Estonian President Toomas Hendrik Ilves said country was "looking for a solution instead of prohibiting a new form of business."
- Polish and Slovak taxi drivers staged drive-through protests against Uber last year, saying its uncertified drivers pose a threat to legitimate businesses.
- Estonia became one of the first countries to use online voting in 2005.
- Estonian schools have introduced programing classes for children as young as 6.
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Autor(en)/Author(s): Marine Martin
Quelle/Source: Transitions Online, 02.03.2016
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