Italy’s taxi industry operates as a closed shop, with a powerful lobby maintaining an iron grip on the market through political influence, violent protests, and systemic restrictions on competition, according to Euractiv.
Despite recent reforms, the sector remains dominated by the same entrenched interests that have controlled it for decades.
Italy’s taxi regulations have remained largely unchanged since 1992, creating an artificial scarcity of licenses. Major cities like Milan and Rome haven’t issued new permits in over 20 years, whereas Livorno holds the dubious record of not granting any since 1975.
What was once a public service has become a private asset, with licenses trading for up to €200,000—and even €400,000 in Venice.
The taxi lobby has repeatedly blocked liberalisation efforts, even under reformist governments like Mario Draghi’s. Their influence is so strong that they have paralysed Italian politics with mass protests and, in extreme cases, violence.
Matteo Hallisey, president of +Europa, stated that “they are the only group that has managed to reach the Italian Parliament and Senate with makeshift bombs, facing little to no opposition from law enforcement.”
Sham reform?
In 2023, Italy finally lifted its 20-year ban on new licenses, increasing their number by 20%. However, the reform was structured to benefit existing drivers. New licenses cost €75,500 in Rome and €96,500 in Milan.
Moreover, 100% of the revenue goes to current license holders, which is a clear political concession. Even drivers who originally received licenses for free will now be compensated.
Transport economist Andrea Giuricin notes that the increase is too small to meet demand, meaning long wait times and poor service will persist.
Tax evasion, mafia-like behaviour
Official tax returns show absurdly low reported incomes—some drivers claim just €700 per month, despite licenses being worth hundreds of thousands. Many still refuse to use mandatory POS systems to avoid traceable payments.
In Bologna, taxi driver Roberto Mantovano exposed the industry’s tactics in a book, revealing how drivers manipulate earnings. After speaking out, his car was repeatedly vandalised.
The lobby has successfully stifled private hire vehicles (NCCs) with absurd rules, such as a mandatory 20-minute wait between rides—effectively preventing them from competing. The EU Court of Justice ruled last year that such restrictions violated competition laws, and Italy’s Constitutional Court recently struck down the NCC license freeze as unconstitutional, citing citizens’ right to mobility.
Despite legal challenges and public outrage, real reform remains elusive—leaving passengers trapped in a system designed to serve drivers, not customers.
