New taxi law in Denmark reduces regulation and control

The Danish right-wing government reached a broad agreement on February 9, 2017 with all the parties of the Danish Parliament on a new taxi law that deregulates many aspects of the taxi industry.

Limitations abolished

The agreement eliminates provisions limiting taxi operation across municipal borders and removes the cap on taxi operator permits. Danish taxi companies can now operate across municipalities nationwide and everyone who meets the requirements to drive a taxi can obtain a taxi operator permit. The law also opens up for the operation of taxis under the auspices of a company, further aligning the taxi industry with the other commercial industries.

Drivers must meet requirements

Taxi drivers are no longer required to have a commercial driver’s license. However, drivers must be at least 21 years of age and have held a regular driver’s license for at least three years. Taxi drivers must also have a permit to transport passengers. The requirements regarding conduct, health and training remain in force.

Taxis must be visible and approved

The new law requires annual inspections of taxis, the posting of fare information inside the vehicle, and a permit number and company name on the vehicle. Other requirements also remain in force, including video surveillance and fuel efficiency requirements. Taximeters and seat sensors also remain mandatory under the new law.

Taxi dispatchers must coordinate trips

Taxi services must be offered through a dispatch office. Dispatch offices must have electronic communication equipment that can save and store data, and transfer this data directly to the tax authorities. The dispatch office can freely choose which taxi operators it works with. This means that the previous right of affiliation with a dispatch center has been abolished.

Stronger basis for tax monitoring

The existing requirements on taxi equipment have been expanded to include mandatory collection of GPS-based driving data, which allows for better tax monitoring of taxi services.

The main elements of the taxi agreement:

  • The cap on the number of taxi permits has been lifted, which means that everyone who meets the requirements to operate a taxi also has the right to a permit.
  • The municipal borders for taxi operation have been eliminated, allowing taxi companies to operate across municipal borders nationwide.
  • Taxis can now be operated under the auspices of a company, aligning the taxi industry with other commercial industries.
  • Those who provide other forms of commercial passenger transport, e.g. public service transport and transport of the disabled, will now have the option of providing taxi services when they are not providing other forms of commercial passenger transport.
  • Municipalities may provide taxi services in remote areas, whereby these municipalities pay a fee to the taxi companies for servicing designated remote areas.
  • The commercial driver’s license requirement has been abolished. A permit to transport passengers remains mandatory and the driver training requirements have been expanded.
  • Taxis must still be equipped with seat sensors, video surveillance.
  • Special equipping of the vehicles is still required, taxi operators must have a permit to provide taxi services and taxi drivers must have a special permit to transport passengers.
  • The legislative changes are being gradually phased in over a three-year period, while taxi operators will have five years to equip their vehicles according to the new requirements.
  • The new law will be assessed after one, three and six years to monitor the market and development of new technologies.