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Alleged foreclosure effects between taxi drivers and cabs dispatching systems

Lear has assisted the largest cab dispatching company in the city of Rome, Radiotaxi 3570, in the hearing before the Italian Competition Authority, held on May 9th.
The Italian Competition Authority (ICA) is investigating into the top three cab dispatching companies operating in Rome. The three companies are indeed “cooperatives”, whose members are taxi drivers associated with the cooperative under a bilateral non-compete agreement, implying that the cab drivers cannot accept calls for service from competing dispatchers and the associating dispatcher only send service requests to its own associates.
The investigation is based on a complaint filed by Mytaxi, a German company owned by Daimler AG, that is active in the taxi market of Rome with its web mobility platform (a separate investigation is underway for the city of Milan, because of the local definition of the relevant markets). The claim is that the foresaid non-compete clauses limit the ability of Mytaxi to match a greater share of demand for taxi service it receives from platform users, because they limit the expansion of Mytaxi’s network of cab drivers.
Lear’s economic analyses show that: ICA’s evaluations are inconsistent with the theory of harm that prompted the investigation, are based on unreliable data and provide inconclusive evidence on the alleged relationship between the dispatching performance of Mytaxi and the existence of the foresaid non-compete clauses, that are necessary for the cooperatives’ business model.