The Portuguese TVDE association says that there is “oversupply combined with artificially low prices” in the sector and prices charged are “artificially low”. Simultaneously, in a context of high fuel prices, he praises Bolt (but leaves warnings) and criticizes Uber.
Ivo Miguel Fernandes is president of the Portuguese Association of Transporters of Uncharacterized Cars (APTAD). In a statement sent to DN and DV, he highlights that “the excess supply of vehicles in the sector is mathematical evidence.”
The person responsible therefore opposes the perspective of one of the largest operators in the Portuguese market. According to the perspective shared with DN/DV by Mário de Morais, general director of Bolt Portugal, in interviewTVDE vehicles “there are still too few for what we need in Portuguese cities”. Now, APTAD has a diametrically opposite view.
“TVDE vehicle occupancy rates have consistently remained below 50%”you can read. A scenario “that clearly demonstrates that demand does not keep up with the existing volume of supply”, adds Ivo Miguel Fernandes.
“The only way to support the idea of ’lack of vehicles’ is to consider artificial levels of demand induced by excessively low prices”according to him. Now, these trips are, in many cases, cheaper than using public transport, so that it is “evident that the prices charged by the platforms — often below the actual cost of the operation — they only serve to stimulate artificial demand”he adds.
The situation “it is not sustainable nor can it serve as a basis for structural decisions in the sector”to the extent that “excess supply combined with artificially low prices (…) compromises sustainability activity”, points out the APTAD leader.
Therefore, the association clarifies that it is important to review the TVDE Law, “with the introduction of mechanisms that guarantee economic balance, namely minimum fares and a minimum occupancy rate per platform”shoots.
Bolt insists on demand above supply
Sought by DN/DV on the topic, the Bolt highlights that “the occupancy rate cannot be measured in isolation by a single platform”, as a driver may be seeking services on more than one app simultaneously, but “you can only make one trip at a time”.
Thus, the company guarantees that the offer is increasingly used, as “the number of travel requests has grown at a faster rate than the growth in the number of drivers”in the national market. In this context, it warns of the “volume of travel requests that are not completed due to lack of available supply”, which it considers to be “a direct signal that demand exceeds current supply capacity” of the TVDE sector.
Increase in fuel prices
APTAD praises Bolt’s measures to mitigate fuel increases, such as “discounts on fuel, upward revision of minimum prices in certain geographies and allocation of support vouchers to the most active drivers”, reads the same statement.
Even so, remember that these are “palliative” actionswhich calls for “structural measures”, as would be the “suspension of registration of new vehicles on the platform”in order to increase the occupancy rate and “stabilize the market”.
Ao DN, a Bolt indicates that there was an increase in tariffs“not just motivated by fuels, but as a global review of service conditions”, in order to ensure the “sustainability” of the activity.
On the other hand, APTAD harshly punishes another operator in the sector: Uber. Criticize the “complete lack of response” of itself, while not presenting “any measure of support for the sector”, he points out.
The association says the company remains silent and maintains “unchanged” rateswhich he considers “unqualifiable”. A scenario that highlights “the problems of the current sector model, where Platforms control prices but do not take responsibility for the economic impacts of decisions [que tomam]”from the perspective of the association.
Contacted by DN, the Uber highlights that it managed to reduce exposure to the increase in fuel prices, via electrification of the fleet.
By this height, “more than 50% of kilometers traveled through Uber in Portugal are already in electric vehicles”while drivers benefit from a price of 0.41 euros/kWh on all fast and ultra-fast chargers. “A 40% discount”emphasizes the operator.
On the other hand, “The platform model already adjusts prices based on the demand and availability of drivers, allowing drivers’ needs to be balanced in real time with affordable prices”, explains Uber, to DN.
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