Ride-hailing platform Bolt believes the introduction of a measure forbidding Y-plate-cabs from waiting for bookings within 100 metres of white taxi stands and 15 metres from bus stops could “kill the industry". 

Its reaction comes after Transport Malta requested operators including Bolt, eCabs and Uber to roll out geofencing technology, a measure to prevent their cabs from waiting for bookings in certain areas. 

The transport regulator urgently requested ride-hailing platforms to introduce the measure to prevent their cabs from waiting and accepting rides outside the Phoenicia Hotel in Floriana. 

Operators have also been asked to ensure the geofenced area’s boundaries are at least 250 metres away from stands dedicated to white taxis, meaning Bolt, Uber and eCabs will not be able to accept rides within that area. 

The new regulation also forbids Y-plate cabs from waiting for booking within 250 metres of the Malta International Airport, Valletta cruise port or other ferry landings. 

“If they chose to enforce this law, they will effectively kill the whole industry in Malta,” a Bolt spokesperson told Times of Malta. 

"I can’t imagine a scenario where it will be feasible... for a driver to operate in such a heavily restricted market."

The spokesperson said consumers and drivers will be worse off if the geofencing measure is implemented. 

“This will increase driving time and fuel consumption, and means fewer opportunities to receive orders, so less earnings for the drivers,” the spokesperson explained.

“It will also cause more congestion, as drivers will start flocking to the hot spots where they can get orders.”

If the measure is introduced it means that should a cab drop off a passenger outside the Malta International Airport, even if another passenger is trying to book a ride at the departure terminal, the cab will have to leave the area before accepting the ride. 

“Traffic will increase, it’s going to get worse. People and drivers will get more frustrated. Prices can increase or decrease, either way will harm the driver or the consumer. If fewer people are incentivised to use cabs, they will revert to using their private vehicle, and then we are back to square one.”

The spokesperson said the measure was first mentioned last year and the company “chased” Transport Malta for further details.

The company only received details for the first time on Monday.

“We raised our concerns, including the fact that the technology required to operate as requested is not readily available, with both the previous Transport Minister (Aaron Farrugia) and the current one, and also with Transport Malta many times.”

He said the operators do not have the technology to implement the geo-tracking measure and currently informing drivers about the new measure in the Phoenicia area. 

“In the grand scheme of things, I understand their intentions of why they are doing this measure, but it is not going to work out as they had planned. Through dialogue and consultation, this would have been avoided in the first place.” 

He said if the law was implemented, white cabs would also be unable to cope with the large number of tourists and people in certain hotspots, such as the airport. 

On their end, eCabs said it will review the geofencing measure. 

“As always our primary concerns are rider and driver experience, as well as the overall sustainability of the ride-hailing industry,” eCabs CEO Andrew Bezzina said. 

“While discussions are ongoing, we have some reservations on the matter. Limitations on where rides can be accepted will inevitably lead to longer wait times for passengers, less efficiency for drivers and dead mileage.”

Meawhile Uber said that while it will do its best to adapt its technology to implement these geofencing regulations, it believes that such regulations were not in the best interest of the public.

"Geofencing restrictions will increase traffic congestion and pollution while making cab services less efficient and more costly to the end user. We remain committed to work with the relevant authorities to find ways to improve the urban mobility in the island," a representative added.

Social media has meanwhile been flooded with criticism towards the new measure.

"How is this legal? At the very least, this is discriminatory towards those who cannot walk that far," one person commented on Facebook.

Another said the customer should decide what service to use, and not the government. 

'Geofencing already in law'

In a statement, Transport Malta said the geofencing system is already covered by legislation.

The authority will introduce a ‘test and trial’ in designated areas around the country "to improve traffic flow and safety".

“In collaboration with the main ride-hailing platforms like Bolt, eCabs and Uber, TM is facilitating geofencing technology to manage operations in the area.”

The authority added that geofencing has been adopted in several other countries and clients can still reserve Y-plate vehicles from within the designated geofenced area.