"Taxi, please!” It’s a phrase you’ll be hearing less and less at Findel from 2 March. The arrival of the tram at the airport will be a turning point for the private transport sector. Though it has long been possible to go directly from the central station and Kirchberg district to the airport by bus, travellers will now be able to reach the airport via tram thanks to two new stops: “Findel-Luxembourg Airport” and “Senningerberg, Héienhaff.” This extension, which is intended to improve traffic flow and encourage the use of public transport, is also giving rise to serious concerns in the taxi sector.

While the arrival of the tram represents a potential threat to taxis, its impact will depend on passenger habits. Many drivers have refused to testify, expressing their unease at this development, which is likely to affect their business...

Paul José Leitao, president of the Taxi Federation and CEO of Hello Taxi, expects a drop in the number of journeys to the airport. He points out that the same phenomenon occurred when the tram linked the central train station to Kirchberg, causing a significant drop in taxi journeys on this corridor. However, he believes that the profession needs to evolve and position itself as a complement to public transport, a trend that is already well established in Europe.

For Emile Weber and Webtaxi, the impact will be felt mainly on journeys between Kirchberg and the airport, but will be less for other journeys. Many travellers prefer more flexible and faster solutions, particularly to destinations not served by the tram.

Fabio Todoverto, founder of Alo Taxi, agrees that Findel accounts for 20-30% of his business. However, he is not worried for the moment. “There will be an impact, but not enough” to upset their business model, he explains, pointing out that his company makes most of its journeys between Luxembourg City and the rest of the country.

Taxis and VTCs play to their strengths

Faced with this new competition, taxis and VTCs are banking on their added value to retain their customers.

"Free public transport is an asset for mobility, but it does not cover all users’ needs. Taxis remain an essential solution for specific journeys.” At Emile Weber, the emphasis is on quality of service, with competitive fares and a premium positioning that offers customers a level of comfort that public transport cannot guarantee.

For his part, Todoverto is not planning any immediate changes to his operations. His company relies on a loyal customer base, quality service and a call centre that has been in operation for 15 years. He also points out that his partnership with Uber allows him to diversify his bookings and ensure a presence on several channels.

Longer working hours

With a possible reduction in the number of journeys, some drivers are already considering increasing their working hours to compensate for the losses. “Before, we could finish the day at 6pm. Now we’ll have to work 12 hours or more,” says an anonymous driver, concerned about the future of the profession. “There are too many taxis in Luxembourg and not enough work for everyone.”

Longer working hours

Despite the arrival of the tram, some passengers will remain attached to taxi and VTC services. According to Emile Weber, business trips are one of the mainstays of the business, particularly during the week, while weekends will see a more tourist or family clientele, often loaded down with luggage.

Todoverto shares this view. “Our main customers are businessmen and families with children who can't afford to wait for a tram with luggage or risk a delay,” he stresses. He points out that taxis are still a fast, direct service, with door-to-door pick-up that has no equivalent in public transport.

A stronger presence at the airport

To limit the impact of the tram, some operators are already looking to optimise their presence at Findel. Leitao has announced that changes are planned to the taxi queue at the airport to facilitate access for passengers. For its part, Emile Weber is planning to adapt its presence at the airport to build customer loyalty.

A sector under pressure

While the arrival of the tram represents a challenge, taxis are also facing increased competition and a “lack of support from the state.” “The state has never sat down with the bosses and small taxi owners to find a solution that’s good for everyone. The government also needs to help taxi companies, especially SMEs,” he laments. He advocates support for SMEs in the sector, which would enable taxis to be better integrated into the public transport network, with more accessible fares and a fairer economic model. Todoverto stresses another problem: the lack of solidarity between drivers. “It’s every man for himself. Stop doing what you’ve always done, that’s Luxembourg’s problem. If we pull together, we can fight anyone.”

While the impact of the tram has yet to be measured, it is adding pressure to a sector that is already under strain. With market transformation, increased competition and a lack of public support, taxis will have to prove their added value if they are not to see their customers flee... by tram.

This article was originally published in .