Capevi It was left without a “monopoly” after the Community of Madrid rejected 7,700 licenses for VTCs. The decision had two immediate consequences for the original Barcelona operator. The first was a drop in income for more than 1.200 million euros due to his inability to sell the licenses he was eligible for in Madrid.Considering that the average cost of each license is around 160,000 euros. The second directly affects drivers who have accepted the purchase options for these licenses by having to contribute 20,000 euros when formalizing the contract.
Cabify has announced it will file a controversial administrative appeal against the Community of Madrid’s decision, but is waiting to see when it will return the deposit. “Cabify has always complied with Terms and Conditions of the Contract“At the moment, the operator intends to wait for a final ruling, a decision that would mean additional costs for the purchaser of the call options if the amount advanced in the deposit is not paid immediately,” the company said.
The company is “committed to doing all the work for which it is responsible, so as not to be responsible for it.” The administrative processing ends with the issuance of VTC cards in your favour.». This fact alone will determine the first condition precedent to the agreement and will be communicated to the buyer via email. To clarify, the platform that operates the VTCs states that the previous condition “will be deemed fulfilled on the date of issuance of the VTCs by the CAM in favor of the seller”, referring to the contract that this medium has been able to access.
Capevi contract and paper buyer
The unsuspecting buyer is now required to provide “written notice” to Cabify announcing the cancellation of the commitments. Only then will the company proceed to return the down payment to the buyer or approve an extension.Neither party shall have the right to claim any amount from the other party, except for the return of the advance payment.“There is therefore no guarantee of payment, except the obligation to do so, an unusual fact for someone in a dominant position in the negotiations,” the contract says.
Many of them are savers and their economic situation is not prosperous, which is why they took out bank loans at a high interest rate due to the inability to repay the full amount.
There have been warnings about this situation in recent months.It was a time bomb.“With these licenses, Cabify would have generated €1,232 million in revenue taking into account market prices, a real lifeline for a platform that continues to burn capital and needs multi-million dollar contributions from major shareholders, such as Rakuten,” said industry sources consulted by MERCA2.
VTC drivers saw a business opportunity and a work alternative with these license purchase options, but the good news came true. The workers were left with a piece of paper worth zero euros, but the financial transaction entailed an additional cost: interest on the credit. This debt cost could lead to Additional payment of 1600-1800 eurosThis is according to the interest rates obtained on the loan, which range between 9% in the case of consumer goods.
Documents required to request advance payment from CABIFY
The same sources indicate that “the drivers who responded to that call are losers”. It is now time to do all the reverse paperwork to request a refund of the €20,000 submitted to the platform for the option to purchase a license that will not be implemented because the said license does not exist. In the best case scenario, Cabify can refund the amounts immediately, which represents a significant expense at a financially sensitive time for the company.
Legal sources familiar with the sector indicate that without a final ruling, Cabify could reserve the right not to return the call options on the grounds of appeal. Meanwhile, the buyers of the papers themselves will have to pay the interest on their debts and will lack the valuable license to start a new professional business, subject to the terms imposed by Cabify in the contract.
Cabify made buyers understand that it was a license, Through strong marketing and telephone to be able to conclude agreements quickly in front of the Madrid community This process can be commented on.
The aggressive strategy seemed like an “ultimatum” and “blackmail,” which employers like Unauto VTC opposed.I do not agree with this way of acting.He confirmed Jose Manuel PerzalCEO of Unauto VTC and the sector in Madrid, in a telephone conversation with this medium.
Likewise, the chief executive of Unauto VTC considers that the Community of Madrid has carried out the entire operation with the utmost precision and diligence to avoid damaging urban mobility, which must be regulated in coexistence with the taxi. « The balance has been achieved between supply and The request will be closed and there will be no room for new licenses.“, pointed out.
Vocational training centers, a market with optimal balance
“Increasing the number of licenses would not only harm the sector, but would also have a negative impact on the quality of service,” he stressed. Berzal points out that it is the National Commission for Markets and Competition that must rule on the possibility of Cabify becoming a monopoly in the event of obtaining a greater number of licenses from the Community of Madrid. However, it is not its main stage She hopes that the administration will continue to reject these requests.“We have reached the ideal point of balance between supply and demand,” he stressed. Its main goal is for the sector to work with taxis to improve the quality of service, especially with the arrival of tourists.
These are four-year licenses included in the moratorium decision for Ábalos. Justice demanded Madrid City Council begins the process for more than 25,000 of these VTC permitsMost of the licenses were from Cabify and its entry into the market meant a monopoly.
The operator indicated that at least half of them should enter the market, while employers in the sector indicated that the arrival of just 1,000 additional vehicles would represent a serious imbalance in the sector, given that most of them are from a single player. As these media learned, the majority Of the papers were intended for individuals.Without the interference of money and big companies.
Workers bought options on licenses: CABIFY did not have these options.
“The problem is that you are playing with selling something that you don’t have, and on the other hand you are playing with the fact that the customer you are selling this to, the victim in this case, is the main victim because he has been exploited,” they noted.
Money is easier. First, because they are in no hurry to claim money, and second, because they have an army of lawyers who can put Cabify to the test if you resist their demands for payment.– Lack of financial preparedness and knowledge“There is a lack of training,” the same sources confirmed.
In addition to leaving more VTC licenses to Cabify, there would be a supposed problem with its ability to “set prices.” They concluded that this would “put the rest of the operators and platforms into a war that they have tried to avoid so far.”
