Uber reacts to Bucharest protests: We are pro-regulation, we want to find a solution with the authorities

26 April 2017

Uber is pro-regulation and wants to work with the Romanian authorities to find a regulatory solution that meets the European Commission’s recommendations, Uber Romania officials said amid the transporters’ protest in Bucharest. They also said that Uber would want to operate in a framework that defines new services like the one they’re offering.

Meanwhile, some 3,000 drivers and transporters who protested in front of the Government's building in Bucharest on Wednesday, April 26, managed to convince the Government to change the taxi law and have the Police fine Uber drivers and other people who carry unauthorized transport activities, according to Mediafax. The law changes will be adopted in maximum 30 days, according to the transporters' association COTAR, which organized the protest.

COTAR has repeatedly accused Uber drivers of unfair competition as their activity is not regulated similarly to the taxi services. The association also accused Uber and its drivers of not paying taxes to the state budget.

"Uber services are 100% taxed – thousands of Uber partner drivers are registered as authorized individuals (PFA) or limited liability company (SRL) and pay taxes for the revenues generated via the Uber platform. In turn, Uber has a subsidiary registered in Romania, paying taxes to the state budget. A partner driver takes 75-80% of the amount paid for a trip. Passengers receive an invoice after each trip," reads the statement from Uber in reaction to COTAR's allegations.

Moreover, Uber also came up with numbers related to the taxes paid to the state. "Last year, only 100 Uber partners paid some RON 320,000 worth of taxes to the state budget, representing intra-Community VAT, income tax, and social contributions. On average, an Uber driver who works in the platform 2-3 hours a day pays monthly taxes of some RON 260, which is almost equal to the taxes an employer pays to the state budget as contributions for an employee paid the minimum wage," according to Uber.

The company's representatives also say that the authorities should also take into consideration the consumers before taking any measures to limit the service.

"In Romania, over 250,000 people in Bucharest, Brasov, Cluj-Napoca, and Timisoara use and recommend the Uber app because it offers a quality, taxed and civilized service. In just two years, Romania had become the fifth market for Uber in the European Union, after England, France, Portugal, and Poland. This shows the Romanian's openness to digital services and the need to more urban mobility options," said the Uber representatives.

"By adopting and encouraging innovative services, Romania can become a model in the region and can join the other EU states that chose to capitalize on digital economy in the people's benefit not limit it."

Some 3,000 taxi driverse gathered in Bucharest’s Victoriei Square on Wednesday, most of them taxi drivers, for a protest against piracy and other unauthorized transport activities, including ride sharing app Uber. The Confederation of Licensed Transport Operators in Romania (COTAR) announced on Tuesday that such protests will be staged in Bucharest on Wednesday and Thursday, but the protest ended earlier after the transporters reached an agreement with the Government, reports local News.ro.

Romania may tax services from online platforms such as Uber, Airbnb

Irina Popescu, irina.popescu@romania-insider.com

Normal

Uber reacts to Bucharest protests: We are pro-regulation, we want to find a solution with the authorities

26 April 2017

Uber is pro-regulation and wants to work with the Romanian authorities to find a regulatory solution that meets the European Commission’s recommendations, Uber Romania officials said amid the transporters’ protest in Bucharest. They also said that Uber would want to operate in a framework that defines new services like the one they’re offering.

Meanwhile, some 3,000 drivers and transporters who protested in front of the Government's building in Bucharest on Wednesday, April 26, managed to convince the Government to change the taxi law and have the Police fine Uber drivers and other people who carry unauthorized transport activities, according to Mediafax. The law changes will be adopted in maximum 30 days, according to the transporters' association COTAR, which organized the protest.

COTAR has repeatedly accused Uber drivers of unfair competition as their activity is not regulated similarly to the taxi services. The association also accused Uber and its drivers of not paying taxes to the state budget.

"Uber services are 100% taxed – thousands of Uber partner drivers are registered as authorized individuals (PFA) or limited liability company (SRL) and pay taxes for the revenues generated via the Uber platform. In turn, Uber has a subsidiary registered in Romania, paying taxes to the state budget. A partner driver takes 75-80% of the amount paid for a trip. Passengers receive an invoice after each trip," reads the statement from Uber in reaction to COTAR's allegations.

Moreover, Uber also came up with numbers related to the taxes paid to the state. "Last year, only 100 Uber partners paid some RON 320,000 worth of taxes to the state budget, representing intra-Community VAT, income tax, and social contributions. On average, an Uber driver who works in the platform 2-3 hours a day pays monthly taxes of some RON 260, which is almost equal to the taxes an employer pays to the state budget as contributions for an employee paid the minimum wage," according to Uber.

The company's representatives also say that the authorities should also take into consideration the consumers before taking any measures to limit the service.

"In Romania, over 250,000 people in Bucharest, Brasov, Cluj-Napoca, and Timisoara use and recommend the Uber app because it offers a quality, taxed and civilized service. In just two years, Romania had become the fifth market for Uber in the European Union, after England, France, Portugal, and Poland. This shows the Romanian's openness to digital services and the need to more urban mobility options," said the Uber representatives.

"By adopting and encouraging innovative services, Romania can become a model in the region and can join the other EU states that chose to capitalize on digital economy in the people's benefit not limit it."

Some 3,000 taxi driverse gathered in Bucharest’s Victoriei Square on Wednesday, most of them taxi drivers, for a protest against piracy and other unauthorized transport activities, including ride sharing app Uber. The Confederation of Licensed Transport Operators in Romania (COTAR) announced on Tuesday that such protests will be staged in Bucharest on Wednesday and Thursday, but the protest ended earlier after the transporters reached an agreement with the Government, reports local News.ro.

Romania may tax services from online platforms such as Uber, Airbnb

Irina Popescu, irina.popescu@romania-insider.com

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