Taking a taxi in Luxembourg is an expensive endeavour, particularly when compared to other countries, but proposed changes are set to change that.

Luxembourg will gradually increase the number of taxi and chauffeur-driven car hire licences over the next five years before removing all limits in 2030, under reforms unveiled by mobility minister Yuriko Backes

One important change is that chauffeur-driven car hire (also known as VLC) and other similar services will be integrated into the law. To date these were only regulated by general traffic regulations.

Online platforms such as Uber have to get an official licence in order to operate in the Grand Duchy. In addition, they will only permitted to work with taxis or VLC operators that are already registered. Every operator must submit a list of drivers to the Ministry of Mobility on a monthly basis.
 
Labour laws must also be respected on a consistent basis. "Drivers have to receive at least the legal minimum wage and they must have social security. We cannot permit social dumping," said minister Yuriko Backes. She added that the EU platform directive has been adopted and is in the process of being implemented in Luxembourg, with reforms that affect the Ministry of Labour.

More licences, no limit after 2030

For taxi companies, the number of licenses is no longer limited. It will gradually increase over the next five years, rising to 850 in 2026/27, and to 1,200 for VLC. In 2029, there would be 1,100 licenses for taxis and 1,750 for VLC. From 2030, there will be no limit. "It was important to me that we were guided by experiences abroad so as not to make the same mistakes. An abrupt opening of the market should be prevented here ," said Backes.
 
At the same time, the division of the country into various geographical zones will also be abolished. The hope is that the lifting of this restriction will lead to more options in rural areas.
 

More comfort and transparency 

The reforms aim to meet customer demand: they want a service that is available quickly, with transparent prices, more comfort and improved safety.

This means taxi prices will continue to be charged per kilometre. VLC services have to be booked via an accredited platform, with the price determined in advance, and drivers from both services have to undergo the same training.

Environmental and quality standards

As far as environmental criteria are concerned, the polluter pays principle applies. Vehicles with higher CO₂ emissions will have to pay higher tax, up to a maximum of 2,500 euros per license.
 
The lifespan of the vehicles is limited to 8 years. This is to ensure that cars that drive many kilometers still offer the necessary comfort after a while.
 
The proposed bill is expected to be tabled in the Chamber of Deputies in the coming days.