The vtc market - France (2024)

1.2 A growing global market

The global VTC market is estimated at uS$***.** billion in **** and is expected to grow at a CAGR of +**.*% over the period ****-**** to reach $***.** billion in ****. In ****, Market resaerch estimates that this corresponds to ** million VTC trips made every day.

The VTC market is booming, particularly among the younger generation. The growth of the urban population and road traffic problems are factors driving growth in the global VTC market.

VTC market size by value and forecasts World, ****-****, US$ billion CAGR: +**.*% Source: ****

North America is the world's leading VTC market, with **% market share in ****, and is expected to remain so over the period studied. It is closely followed by Asia-Pacific, particularly India, which has become the world's most populous country, with rapid urbanization.

The main VTC services are Uber, Didi, Lyft, Grab and Oladepending on the region. For example, Uber held **% of market share in the United States in March ****, compared with **% for Lyft[***]

China's Didi has established itself as the world's leading VTC company, with over *** million users by ****[***]. It is gradually moving into foreign markets, attempting to compete with Uber.

1.3 Before the Covid-19 crisis, bright growth prospects in France

The market for passenger transport by cab:

According toInsee, code **.**Z entitled "Transport of passengers by cab" includes :

Passenger transport by cab, including central reservation services Non-medical transport of people with reduced mobility Radio cabs Passenger transport by motorcycle cabs Private car rental with driver

VTC drivers are also included in this NAF code, and must therefore register here. [***]

Although this NAf code is broader, it is interesting to note the growth of the cab passenger transport sector between **** and ****. However, activity fell sharply in **** with the Covid-** crisis, with the sector's **** sales falling back to below **** levels. Nevertheless, since ****, sales in this sector have grown by over **%, and will exceed * billion euros in ****.

Growth in passenger cab sales France, **** - ****, in billions of € Source: ****

According to a study carried out by the Boston Consulting Group (***), which totaled *.** billion in ****. The VTC sector contributed *.**% of France's GDP in **** and *% of its growth - in Île-de-France, it even reached *.*% of the region's GDP and *% of its growth. [***]

Thus, if we assume that the market share of VTCs in the overall private passenger transport market remains the same, VTC sales in **** will be worth *.** billion euros. This estimate probably understates the actual sales ...

1.4 The impact of the Covid-19 crisis

The graph below shows the trend in sales of passenger transport services provided by cabs. Although most VTCs are not registered under this NAF code, the activity is similar, which makes it possible to estimate the very negative impact of the Covid-** crisis on the sector. We note that the impact is particularly strong in the April-May period, corresponding to the first confinement.

Growth in sales of cab passenger transport services France, ****-****, index base *** **** Source: ****

VTCs experienced the same negative impact:

Business plummeted by almost **% during the initial containment at Heetch. During the summer of ****, activity fell by **% to **% at Le Cab compared with ****.

The number of active drivers fell by **-**% in ****, leading to a drop in fare prices - so in summer **** Kapten's sales fell by **% while volumes fell by **%.

There are several reasons for the losses:

Reduction in trips linked to international customers: i.e. both tourists and trips to airports (***). Reduction in trips linked to nightlife (***) Reduction in business trips linked to the rise of telecommuting (***). At Allocab, "corporate" accounts are down **-**% on normal.

Source: ****

What's more, several of the factors behind the decline in VTC activity linked to the Covid-** health and economic crisis ...

2.1 VTC consumption

From **** to ****, household consumption of Taxis and VTCs rose by **%, demonstrating French interest in this service. This growth was impacted by the covid** crisis, resulting in a **% loss of household consumption in this segment. In ****, household consumption of cabs will regain ground, but will still be *.* points below its pre-crisis value.

Nevertheless, consumption has largely recovered since ****, with growth of **% between **** and ****.

Growth in household consumption of cabs and VTCs France, ****-****, in billions of euros Source: ****

French household spending on cab and VTC services is linked to their purchasing power. The current inflationary context could point to a decline in the use of VTC services at the start of ****. Indeed, inflation in **** stands at +*.*% and +*.*% in July ****. Banque de France forecasts a return to normal inflation, below *%, for ****.

Inflation trend France, ****-****, in Source: ****

Impacted by the slowdown in the economy, the arbitrable* purchasing power of the French regressed by *.*% in **** compared with the previous year, a satisfactory decrease nonetheless given INSEE's forecast of -*%. [***] In ****, arbitrable* purchasing power increased by *.*%.

Trend in French purchasing power France, ****-****, in Source: ****

An over-representation of young people and people from wealthier backgrounds in the customer base

Users of VTC services are predominantly ...

2.2 Application features

VTC services preferred by the French

The graph below is based on OpinionWay's survey of French people's favorite brands in March ****. These are respondents' answers to the question "Do you like this or that VTC company?" for each brand, with the percentage corresponding to the proportion of respondents who answered "yes". The following * companies are included in the survey: Uber, Bolt, Heetch and Kapten (***).

Uber is at least * times more popular than other VTC companies. This goes hand in hand with the much higher level of awareness Uber enjoys among the French population as a whole: **.*% awareness for Uber versus **.*% for Bolt, **.*% for Heetch and **.*% for Kapten.

It should be noted that among the French population as a whole, the level of depreciation of each of these services is equivalent to the level of appreciation. The percentage of positive responses to the question "Don't you like this VTC service" for Uber, Bolt, Heetch and Kapten are **.*%, *.*%, *.*% and *.*% respectively.

French people's favorite VTC companies France, ****, in Source: ****

There is a gender disparity, with women showing a stronger preference for Uber, as shown in the graph below:

French people's preferred VTC services by gender France, ****, in Source: ****

Finally, young people seem to appreciate ...

2.4 The rise of shared shopping with other users

Uber offers this solution with UberPool, which returned in **** under the name UberXShare after a hiatus due to the health crisis.

A YouGov survey shows that **% of French people are interested in this solution - i.e., a shared cab service where several different people can take the same cab together, travelling in a similar direction - which can be economical.

Likelihood of opting for a shared cab, if it were available where you live and cheaper than booking a private cab? France, ****, in Source: ****

2.5 Focus on VTC demand at night

Although VTCs are not the most popular means of transport for Parisians going home at night, they are well placed (***).

Modes of transport used by Ile-de-France women to go home at night France, ****, in Source: ****

Part of the demand for VTCs concerns night-time journeys. Ease of use (***) are the main reasons why women use them at night.

Reasons why women use a VTC service to get home at night in Ile-de-France Ile-de-France, ****, in Source: ****

2.5 What image and what use for VTC drivers and cabs?

Fake driver scandals

In recent years, the VTC platforms Uber, Bolt, Freenow, etc. have come under fire on social networks, particularly following incidents of assault by Uber drivers. These include women who have been sexually assaulted. In ****, a study published by Harris revealed that **% of women using Uber had already experienced inconveniences ranging from heavy flirting to sexual assault on their ride at night. A judicial investigation is underway following the testimony of a woman who suffered an attempted kidnapping by an Uber driver in March ****. [***] Hundreds of testimonies of this type are present on the networks, questioning women about using VTCs to get home safely at night.

In addition to the cases of assaults carried out by VTC drivers, other fake drivers are on the rampage to commit the same crimes. In January ****, a man posing as an Uber driver and kidnapping a woman went on trial. [***]

VTC applications are trying to combat the scourge of fake drivers and assaults through various devices[***]:

The ability to track one's position and the trajectory to be taken, on the application Access to the car's license plate to ensure that it is not a fake driver A reminder message to confirm the name ...

3.1 A growing number of VTC operators

By the end of ****, there will be more than ***,*** TPPP vehicles, up **% on ****. The share of VTCs in the total number of TPPP vehicles continues to grow. In ****, **% of all such vehicles were cabs and **% VTCs; the following year, **% were cabs and **% VTCs. [***] In ****, **% of active T*P drivers will be VTCs and **% cabs. Furthermore, in ****, of the **,*** T*P driver cards issued this year, **% will be for VTC drivers and **% for cabs.

Share of cabs and VTCs in total public transport vehicles France, ****-****, in % Source: ****

In ****, around **% of private drivers in France were employees of companies governed by the LOTI (***).

According to the same source, the VTC sector has a positive impact on job creation, both quantitatively and qualitatively. On average, a full-time driver earns between *,*** and *,*** euros net per month.

growth in the number of VTCs on the national register :

Because of the ban on operating VTCs under LOTI status in major conurbations with the Grandguillaume law, registrations on the VTC register accelerated at the end of ****. In the end, almost **,*** vehicles were registered on this register between January **** and May ****.

In March ****, there were more than **,*** registered VTC operators.

Growth in the number of VTCs on the ...

3.2 Strong regional inequalities: most activity concentrated in the Paris Region

According to the BCG report, Ile-de-France accounted for **% of the VTC industry's activity in ****, representing *** million in sales that year. Estimated at **% in ****, the VTC sector in Ile-de-France will now account for **% of total activity in **** [***]

Number of Parisian VTCs and cabs Ile-de-France, end ****, in thousands Source: ****

Although the Ile-de-France region's share is shrinking, it remains by far the majority. This is due to the fact that VTC services are gradually penetrating France's major metropolises. As shown on the map and graph below, which traces the trend up to ****:

Evolution of the weight of Ile de France in the total number of VTCs France, ****-****, in % Source: ****

Distribution of VTC drivers in France

Source: ****

3.3 Increased competition in this market

The VTC sector is facing increased competition of three types:

With traditional cabs Between VTC services With other alternative modes of transport.

VTC/taxi competition

Since the emergence of VTCs in France, they have been competing with traditional cabs, raising a problem relating to the different legislation governing the two professions. Traditional cabs complain that their legal framework is much more regulated than that of VTCs. These tensions resulted from the passage of the Grandguillaume law at the end of ****: drivers with LOTI status are now prohibited from driving (***)

The arrival of VTCs on the urban mobility market has generated new competition, pushing cabs to move upmarket, fine-tune their offer and introduce changes that ultimately benefit customers, who have become far more demanding. For example, fares have been lowered, and cabs have significantly modernized their offer, the quality of their service and even their technological solutions.

As a result, the arrival of VTCs on the market has created stimulating competition for all players, including Taxis G*, which has moved upmarket significantly: **% of G*'s *,*** cab drivers now wear a shirt and tie; *,*** vehicles are now equipped with free WiFi; the company has also launched a mobile application for VTCs.has also ...

4.1 Panel of leading VTC platforms

VTC platforms all operate on the same model: the VTC driver is connected to the customer via a smartphone application linked to an algorithm that assigns each journey to the VTC closest to the customer using a geolocation system, minimizing waiting time for customers and time spent driving without customers for drivers. It's then up to the driver to accept or refuse the trip proposed by the application.

Payment can then be made in cash or by direct withdrawal from the customer's bank account: card-based payment is much more common, and is made via the dispatch center's mobile application. This type of payment, increasingly common with developments in the transport market, is known as frictionless payment: payment is made in the background, triggered not by the cardholder, but by the merchant. [***]

Uber, world leader in the VTC market

Uber connects customers with different types of drivers and vehicles according to their needs:

UberBERLINE (***) UberX (***) Cab (***) Uber Comfort (***) UberVAN (***) UberXShare (***), etc. UberGREEN (***) UberReservation (***) On another note, Uber now even offers a home meal delivery service via the UberEATS application.

What's more, it's possible to make a trip with several stops.

FreeNow (***), no. * VTC in France

Ex - Chauffeur Privé - taken over ...

4.2 Competitive prices

VTC fare

In ****, the minimum price of a VTC journey will rise to €* excluding commission, and drivers will receive a minimum income of €** per hour worked. [***] The price of a trip depends on location, distance and traffic.

The average price of a VTC journey is €**, compared with €** for a cab. The average duration of a VTC journey is ** minutes, very close to that of a cab journey (***). Finally, users generally use a VTC for local distances : the average distance covered is * km, compared with ** km by cab. [***]

Breakdown of fare costs

In general, it is estimated that **% of the price of a VTC trip goes to the driver and **% to the platform.

But this breakdown of the price of a trip between the platform, the driver and other costs now varies from platform to platform. For example, the median hourly turnover of Uber VTC drivers is estimated at **.** euros. But after paying **% commission to the platform, plus service charges, VAT and social security contributions, the driver earns just *.** euros. This means that he only receives **% of the fare paid by the customer. [***]

The following table summarizes the commissions charged by the various VTC platforms in ****.

Commissions charged by VTC platforms

France, ...

4.3 A sector in constant innovation

The VTC market offers excellent growth prospects in France over the coming years. It's a buoyant market that offers many opportunities for innovation and diversification.

Feminization of the sector

The VTC sector is very male-dominated : today, **% of VTC drivers are men. [***] Women are partly reluctant to become drivers because of the sense of insecurity they feel when faced with aggressive passengers on night rides.

There is therefore enormous potential for feminization of the sector, which has been seized upon by the Kolett company, which offers ***% female VTCs by matching female drivers with an almost exclusively female clientele. The idea is to relieve women's anxieties, especially when they return home at night. According to the Observatoire national de la délinquance, **% of women feel unsafe on public transport. [***] For this reason, they quite frequently opt for a VTC in the evening; but faced with repeated cases of harassment in these VTCs, Kolett wanted to maximize the chances of a woman feeling totally safe during her VTC journey.

A diversified offering

MAD VTC, an innovative application: MAD VTC is a VTC platform created in **** that today has *** drivers. It stands out from its competitors through its business model: it does not pay drivers ...

5.1 VTC regulations

VTC regulations have evolved considerably since ****, in particular to better distinguish the respective areas of activity of cabs and VTCs. [***]

december **, ****: order concerning the minimum length imposed on VTCs (***); december **, ****: decree requiring all VTCs to have a minimum net engine power; december **, ****: decree imposing a minimum delay of ** minutes between booking and customer pick-up. This decree was suspended on February *, ****, then annulled on December **, **** by the Conseil d'Etat, arguing that the Government was "not authorized to add to the existing legislation".was " not authorized to add new conditions to the VTC regime that would restrict their activity". October ****: the Thévenoud law redefines cab and VTC regulations more globally. It prohibits VTCs from practicing "electronic marauding" via the following three provisions: VTCs are prohibited from informing customers of their availability and location when they are located on a road open to public traffic Obligation to return to the shed or a place off the road after each trip Ban on parking in railway stations and airports beyond a maximum time limit.

The provisions introduced by the Thévenoud law have been difficult to enforce due to the difficulties involved in monitoring them. In fact, Uber challenged several points of the law's ...

5.2 Regulations governing VTC drivers

The Grandguillaume law

The Grandguillaume law, which came into force on January*, ****, has considerably modified the conditions of access to the VTC driver profession.

In particular, it prohibited VTC drivers with LOTI status from working for VTC platforms. LOTI (***) status, created in ****, allows drivers to work without specific theoretical training. Drivers with LOTI status wishing to continue working for VTC platforms must obtain a VTC license, a procedure that takes some time. In addition, self-employed drivers wishing to obtain a VTC license must pass a theoretical exam, which is very complicated to obtain.

This is why the implementation of the Grandguillaume law has led to a sharp drop in the number of VTC drivers: it is estimated that around *,*** VTC drivers have stopped their activity.[***]

Expected professional skills

From now on, VTC drivers must :

have held a valid B driving license for more than * years Obtain a certificate of physical fitness issued by the prefect Pass an examination or have at least one year's experience as a professional passenger transport driver in the previous ** years.

Drivers convicted of certain offenses (***) are not eligible to drive.

Professional card

VTC drivers must also hold a professional card, which is affixed to the windshield ...

6.1 Segmentation

• Uber France
• Kapten France - Free Now
• Heetch
• LeCab
• BlaBlaCar
• Getaround (Ex drivy)
• Expedicar
• Otoqi