Uber could make a comeback in Hungary as early as this summer, as reported by Index. The portal, citing information from Telex, stated that the barriers to Uber’s entry into the Hungarian market have been eliminated after the company was issued a dispatching licence. Following approval from the Centre for Budapest Transport, the National Transport Authority has also given the green light for Uber to commence operations in Budapest on 16 April 2024, marking the completion of the official approval process.
With the necessary licenses secured, Uber now needs to recruit drivers, a process that could start in the next few days. If all goes according to plan, the service
could be operational in Budapest by early summer.
Uber is planning to enter the Hungarian market in cooperation with Főtaxi, with the application for a licence submitted in February by F Mobilitás Ltd, a subsidiary of Főtaxi. However, Uber’s press department told Telex earlier that it will operate as a separate service in Hungary. ‘The Főtaxi app and service will not be affected by Uber’s planned entry. The Főtaxi app will continue to operate as before, and the Uber app will be available to call Uber drivers who will transport passengers by Uber Taxi.’
‘The latest trends and challenges in passenger transport dictate that Főtaxi should lead the way in revitalizing the market. In doing so, we are partnering with Uber, the pioneer of app-based passenger transport technology. Soon, our customers will have the option to access our services through the Uber app in addition to Főtaxi,’ Elek Nagy, Chairman of the Board of Directors of Lexholding Ltd, the owner of Főtaxi, stated during the announcement of the collaboration.
Uber ceased its operations in Hungary in the summer of 2016,
following a parliamentary vote in favour of an amendment to the law on passenger transport services. This decision came after pressure from traditional taxi companies. According to the amendment, a driver operating a passenger car service without a license would face a fine of nine penalty points. Upon a second offence, an additional nine points would lead to the automatic revocation of the driver’s license for a minimum of six months. Furthermore, under the amendment, a vehicle involved in illegal passenger transport activities could be removed from circulation for up to three years.
After the amendment came into force, Uber lodged a complaint with the European Commission against Hungary. According to the US company, the new law was explicitly designed to make it impossible for them to operate within the country.
The Hungarian Ministry of National Development responded to Uber’s departure at the time, stating: ‘The government supports innovative solutions, but it also insists that market operators involved in passenger transport must operate legally on equal terms with their competitors, and must pay taxes.’
The ministry said that Uber engaged in unlicensed passenger transport activities, in the process of which it ignored Hungarian regulations. It thus achieved a competitive advantage, similar to that in other countries where as a result it has been banned or seen its activities restricted.
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