Auto Businesses Can Thrive

How Auto Businesses Can Thrive in a Changing Industry 

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The Case for Diversification

The European car industry is under siege. Once the pride of the continent, it is now facing a two-pronged assault: declining demand and rising competition. Chinese automakers like BYD and MG are capitalising on economies of scale, cutting-edge technology, and aggressive pricing to dominate markets. In Norway, where EV adoption is at its highest, Chinese brands already account for 11% of the market, proving their ability to challenge Europe on its home turf. Meanwhile, even stalwarts like Stellantis are struggling; European production is faltering, and job cuts have become an unsettling norm. Tariffs may slow the bleeding, but as history with solar panels shows, protectionism cannot counter better products delivered at lower prices. 

So what does this mean for dealerships, car rental companies, and other local auto businesses? It’s time to look beyond the showroom floor. The industry is shifting, and those who diversify now will be the ones who thrive tomorrow. 

A Changing Market: Follow the Demographics

Car ownership is no longer the status symbol it once was. Millennials, Gen Zs, and Gen Alphas are increasingly turning away from the financial and environmental burdens of owning a car, a trend driven by urbanisation, rising costs, and climate awareness. Across Europe, driving licenses among young people have plummeted, with Britain seeing a 50% drop in teenagers obtaining licenses over the past two decades. Meanwhile, in cities like Paris, policies favoring pedestrians and public transport over cars are rapidly reshaping urban mobility. 

At the same time, the inefficiency of car ownership has come under scrutiny. On average, a car is in motion for only 5% of its life, spending the other 95% parked and underutilised. This inefficiency underscores the potential of shared mobility models, which allow for better utilisation of vehicles and public real estate while addressing consumer demand for flexibility. The rise of the shared mobility market—including car-sharing, subscriptions, and fleet rentals—is poised to reach €200 billion by 2030, marking a fundamental transformation in how vehicles are used and monetised. 

Diversify to Drive Growth 

For dealerships and rental companies, this transformation offers a lifeline. The infrastructure is already there—networks of cars, service technicians, customer relationships, and long-standing industry dominance and the social capital that comes with it—but the business model needs to evolve. Shared mobility offers an opportunity to tap into the growing demand for access over ownership. Mobility-as-a-service (MaaS) provides predictable, recurring revenue streams while meeting the needs of younger, digital-first, sustainability-conscious customers. 

Crucially, this shift doesn’t require starting from scratch. Many local operators are well positioned to integrate shared mobility services into their existing operations. Expanding into short-term rentals or flexible fleet offerings allows businesses to do more with the resources they already have. For car dealerships, this might mean partnering with subscription providers or launching their own branded services. For rental companies, it could involve adopting new technologies to streamline operations and enhance user experiences. 

The Time to Act Is Now 

The European car industry is at a crossroads, but local businesses do not need to wait for manufacturers to pave the way. Shared mobility isn’t a threat—it’s an opportunity to get ahead of the curve, reach new customers, and ensure long-term resilience. The future belongs to those who recognise that mobility is changing and act decisively to adapt. 

The next generation of customers is ready. Are you? 

By Matthew Bezzina, eCabs Technologies’ CEO

Will Europe compete in the global ride-hailing revolution

Will Europe compete in the global ride-hailing revolution?

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The case for digitisation and deregulation

In just five years, shared mobility services, including ride-hailing, are projected to account for over 10% of urban trips, signaling a multi-billion-euro opportunity for economic growth and the chance to tackle urban challenges like traffic congestion and pollution.

Yet, the future of Europe’s mobility market stands at a crossroads: will legacy taxi operators embrace digital transformation, or will they be replaced by tech-driven giants like Uber?

The answer hinges on Europe’s willingness to address its over-regulation crisis.

Europe’s Existential Challenge: Grow or Fall Behind

Mario Draghi’s report to the European Commission couldn’t be clearer: Europe is facing an economic reckoning. 

Without a significant increase in productivity growth, the EU’s economy will remain stagnant until 2050, while global competitors surge ahead. French President Emmanuel Macron echoed this alarm, pointing out that Europe’s regulatory burdens and underinvestment have left it trailing behind the US and China​.

Nowhere is this more evident than in the mobility sector.

Regulatory Barriers: Holding Back Mobility

Across Europe, regulations that once protected local taxi operators now stifle innovation. In Sicily, sky-high licensing fees deter new ride-hailing entrants, reducing transport options. France imposes pick-up restrictions that increase wait times for passengers. Spain caps the working hours of ride-hailing drivers, limiting flexibility. In Greece, outdated pricing laws prevent dynamic models that could boost service availability.

While these regulations were created with good intentions, they now harm consumers and choke out competition.

Meanwhile, in the US, deregulation is on the rise, with tech titans like Elon Musk set to influence policy further through the newly announced Department of Government Efficiency (DOGE).

President-elect Donald Trump, with the help of Musk, plans to slash regulations and streamline government operations, potentially accelerating the growth of ride-hailing platforms, posing a greater threat to European operators if they don’t adapt.

VAT in the Digital Age (ViDA): Leveling the Playing Field

But it’s not all bad news for Europe’s taxi operators. The European Commission’s new ViDA initiative offers a promising silver lining. By mandating that platforms like Uber and Bolt collect and remit VAT, this measure targets the price advantages these companies and their operators have long leveraged through tax loopholes.

With more uniform tax compliance, traditional operators will face a more balanced competitive landscape. Remarkably, the measure has gained overwhelming support across the EU, with Estonia—home of Bolt—standing alone in opposition.

These new VAT rules will help narrow the cost gap between legacy operators and ride-hailing giants, while also boosting EU revenues by up to €18 billion annually. By cracking down on tax evasion, Europe is promoting fair competition and helping traditional operators regain their footing in a rapidly evolving market.

An Urgent Wake-Up Call for Legacy Operators

For traditional taxi associations, the message is simple: Europe’s regulatory framework isn’t their saviour—it’s a potential downfall. The reports show that if Europe continues down this path, it will struggle to remain relevant in the global mobility market​.

Legacy operators must embrace technology to modernise and compete on an increasingly levelled playing field with global ride-hailing giants. This means using data-driven platforms to optimise routes, deploying user-friendly apps for seamless bookings, and improving customer experience to match the expectations of a digital-first generation.

A Balanced Path Forward: Regulation for Innovation

Europe stands at a crucial inflection point. The key is not to abandon regulation but to reform it. Regulation that promotes fair competition and eliminates tax evasion, as seen with ViDA, is essential.

Yet, regulation that enforces outdated business practices must be rethought. A unified, fair, and future-proof regulatory framework could attract investment, spur innovation, and drive sustainable economic growth across the shared mobility landscape.

Yet, achieving this requires political courage and a commitment to reform.

Without swift action, Europe risks falling further behind, costing billions in lost productivity and economic growth.

The time to act is now. 

The case for modernising Europe’s regulatory approach to ride-hailing has never been stronger. If we fail to rise to this challenge, we risk becoming irrelevant in an increasingly tech-driven world. For traditional taxi operators, the opportunity to adapt and thrive is there—but only if they embrace the future.

By Matthew Bezzina, eCabs Technologies’ CEO

 

Europe’s shared mobility market is growing 20% annually, to reach €200 billion by 2030 – Uber and co. want it all

Europe’s shared mobility market is growing 20% annually, to reach €200 billion by 2030 – Uber and co. want it all

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How will legacy operators fight back?

If you operate a taxi business or association today, this is what the likes of Uber and other ride-hailing giants don’t want you to know: the combined taxi and ride-hailing sectors are growing 20% every single year. And, by 2030, Europe’s shared mobility market is projected to generate €200 billion in annual revenues.

But, while legacy operators are dreaming of market share and margins of yesteryear, ride-hailing giants are growing faster than you think.

These Trojan Horses are silently sneaking into cities across Europe – luring drivers and taxi operators with promises of ‘low commissions’ and ‘platform partnerships’.

But what they are really doing is robbing legacy operators of everything they have worked so hard to build.

Traditionally, the shared mobility market has been anchored by taxi businesses and associations-regulated, for-hire chauffeured vehicles available through curbside hail, pre-booking, or dispatch. These businesses were and remain the backbone of this sector. If you run one of these operations today, do not make the mistake of believing you are the underdog. Because this is not a David vs Goliath story – not quite.

Sure, many of these large ride-hailing platforms can draw on billions in investor funding, but legacy operators still make up about half of Europe’s shared mobility sector. And, more importantly, you have something that these new rivals don’t. Legacy operators have built fleets of loyal and trustworthy drivers – something platforms need to spend big on to try and win over.

You also have deeply ingrained brand recognition, in some cases built over decades if not even generations. And most of you operate in regulatory environments that were designed around you and your needs.

The Ubers of this world on the other hand? They will do whatever it takes to steal your driver supply. They will weaponise their sleek apps to dazzle riders too. They will deploy sweeping, glitzy marketing and social media campaigns. They will even engage in product placement with streaming services like Netflix, targeting the GenZ and GenAlpha riders and drivers of tomorrow.

All the while, they will bully regulators into redesigning policy frameworks to work for them, and – if possible – against you.

These platforms don’t want a slice – they’re after the whole pie.

Embracing the future

Every year, ride-hailing’s share of the European mobility market grows. And, although traditional operators still have an edge, their life expectancy will hinge on their willingness to adapt to new realities. The past is over. The mobility market of the early 2010s cannot be recreated.

Today, more than ever before, it has become essential for taxi operators to embrace emerging technology. Younger generations expect seamless, user-friendly, app-based experiences. They expect this and just won’t settle for less.

Meanwhile, as car ownership declines and urbanisation continues to rise, the demand for efficient shared mobility solutions will only continue to grow.

Countries are also looking inward for innovation, particularly as the trend of hyper-globalisation has hit the brakes. This, again, presents a significant opportunity for homegrown disruption, allowing local operators to innovate and adapt to meet the specific needs of their communities.

A lot is changing. The opportunity to go after this €200 billion market is wide open.

It’s time for legacy operators to fight fire with fire – to become the innovators leading the future of shared mobility. But to do this, they need to invest in the future – in cutting-edge technology, operational horsepower, and industry-leading talent. You can do all this while still holding on to your brand, your autonomy, and without having to hand over the steering wheel.

The industry is growing. Are you?

By Matthew Bezzina, eCabs Technologies’ CEO

The innovator’s dilemma: Legacy taxi operators vs Uber

The innovator’s dilemma: Legacy taxi operators vs Uber

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The last of the taxi roof lights are flickering out, and their once-buzzing dispatchers’ radios are falling silent. Across Europe and beyond, long-standing legacy taxi operations face a formidable challenger: ride-hailing applications like Bolt and Uber are sweeping through every market, in every jurisdiction, gobbling up riders and drivers alike.

Contrary to what you might read elsewhere, legacy taxi businesses do not face an uncertain future. They face a clear and inevitable reality: ride-hailing is here to stay. The critical question as the rides industry continues to grow year-on-year is not if traditional taxi businesses will survive but who will take the largest slice of the pie: disruptors or traditional operators?

The dangers of complacency

Fifteen years ago, eCabs was born as a traditional dial-a-cab business. Like most legacy taxi businesses, we manually registered bookings and dispatched rides from our bookings office. I remember those days—passengers queuing outside our dispatch centre after a night out, drivers waiting idly for their turn to be called on the tannoy.

However, we founded eCabs with the intent to digitize our rides service. We built our own digital platform, on bare metal infrastructure, with all the complications that come with it. We’ve experienced the tricky transition from one system to another—patches upon patches, and late-night scrambling to get back online. All the while, we were competing against the largest ride-hailing platform in the region, Bolt.

Over the years, I’ve learned that disruption can come in pitter-patter, showers, or torrential downpours. In Malta, it was a deluge. After Bolt, came Uber. Today, eCabs is the only locally grown ride-hailing operation in its home market, with other businesses in different jurisdictions running on our platform. This success stems from our continuous investment in our digital offering, from partnering with global leaders like the Google Maps Mobility Platform to headhunting talent from leading ride-hailing tech players.

Facing the real threat

What we’ve learned is that the greatest threat traditional taxi businesses face today isn’t innovation and disruption; it’s the temptation to ignore transformative change. The danger is in burying heads in the sand, hoping ride-hailing tech will simply go away. Take it from me—it won’t. These giants are coming for the traditional taxi businesses, and the answer isn’t in ignoring the change but embracing it.

Legacy operators must become disruptors themselves if they want to survive. Harvard Business School professor Clayton Christensen introduced the concept of the Innovator’s Dilemma in 1997, explaining how established companies often focus on sustaining innovations—incremental improvements to existing products—at the expense of recognizing disruptive innovations on the horizon. These major changes may initially serve niche markets, but they have the power to redefine entire industries.

For legacy taxi businesses, the disruption came in the form of ride-hailing apps. Ignoring these innovations is a recipe for obsolescence. As Uber’s own CEO Dara Khosrowshahi said nearly seven years ago: “If you don’t disrupt yourself, someone else will.”

How to fight back

Digital transformation isn’t a button you press; it’s a process. What eCabs has developed isn’t just a white-label patch for legacy businesses trying to add a digital component to their service. We’ve packed 15 years of hands-on industry expertise into a platform built from real-world experience—competing against global ride-hailing giants, managing fleets, developing data-driven rider marketing campaigns, and educating policymakers.

This isn’t a first aid kit for traditional businesses; it’s a journey for operators who want to become regional leaders in mobility. Because make no mistake, global ride-hailing platforms aren’t coming for a piece of the pie—they want the entire thing.

By Matthew Bezzina, eCabs Technologies CEO

Matthew Bezzina will be a key speaker at the upcoming Start-Up Festival in Malta. The festival brings together entrepreneurs, investors, and enthusiasts to explore cutting-edge technologies, disruptive business models, and groundbreaking solutions. A highlight is the “Dream Big Malta” panel, celebrating the achievements of individuals from Malta excelling in international business, professions, or sports.

The original article may be found here.

The future of transportation? Understanding Mobility as a Service

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In this blog post, we discuss what Mobility as a Service (MaaS) is. We also touch upon its key features, and why it is essential for the future of transportation.

Table of contents

‘Fast-paced’ has become an understated adjective in today’s world. People are not only constantly on the move, but the speed of getting from A to B has become an invaluable currency. Transportation is an integral and essential part of our daily lives.

New technologies and service providers have created the concept of Mobility as a Service (MaaS).

MaaS has the potential to transform the way we move, making it easier, cheaper, and more convenient for everyone.

The state of transportation today

The transportation sector is currently a major source of greenhouse gas emissions and air pollution. These emissions have negative consequences for public health and the environment.

Moreover, traffic congestion is a major problem in many cities. This results in lost productivity, increased travel time, and increased fuel consumption.

The future of transportation needs to be more efficient, sustainable, and accessible to all.

What exactly is Mobility as a Service?

Mobility as a Service is a concept that integrates various modes of transportation. It allows its users to make their journey planning easier. It does this by allowing them to plan, book, and pay for multiple types of modes of transportation through a digital single payment channel.

MaaS offers travellers mobility solutions based on their needs, combining transportation services from both public and private transportation providers.

The service is backed by a unified gateway that creates and handles the trip end to end. Users can then pay for the service via a single account.

The MaaS ecosystem is made up of several stakeholders, including transportation providers, technology providers, and service integrators.

The service integrator is responsible for aggregating transportation services and making them available to users through a single platform.

Democratising access to mobility

eCabs International Business Development Manager Ruslan Golomovzy explains that Mobility as a Service is the first step towards democratising access to mobility for all, across all modes of transport – through technology.

“The integration of various transport modes – public transport, ride-sharing, bike-sharing, car-sharing and private cabs – into a technology offering that is intuitive has been a revolutionary approach to tackling the dominance of the private car and freeing up cities to be used by people, not vehicles.”

We can consider that there are four key aspects to MaaS:

  • Convenience
  • Sustainability
  • Costs
  • Access

“Access to mobility is about generating smiles, not miles. It has to be convenient for the end user and create options in how they choose to travel. MaaS must be sustainable through alternative transportation and compete with the use cases of private vehicles. Cost savings should come from optimisation of the various types of transport and providing flexibility for the end-user in planning their routes based on the associated costs. Finally, the accessibility of MaaS through technology allows underserved areas to have equal exposure to the MaaS revolution.”

The democratisation of mobility, alongside the environmental impacts, leads to healthier societies. It also gives rise to better use of the existing infrastructure and the development of more efficient mobility, namely in the micro mobility sphere.

Key features and benefits

One of the key benefits of MaaS is convenience. With a single digital channel, users can plan, book, and pay for multiple types of transportation in a single process.

MaaS also offers travellers the ability to compare transportation options and make informed decisions about their journeys.

A MaaS journey planner can provide different options for getting from one destination to another. For instance, one could combine using public transport and a train.

MaaS provides access to real-time data about transportation options, allowing travellers to make informed decisions about their journeys. MaaS also offers travellers cost savings, as they can pay for transportation services through a single account.

Access to mobility is about generating smiles, not miles. It has to be convenient for the end user and create options in how they choose to travel.

eCabs International Business Development Manager Ruslan Golomovzy

Another key benefit of MaaS is that it can help to reduce the number of private cars on the road. This is because the economic benefit of owning a personal car may be questioned in favour of more reasonably priced on-demand car services.

“Say you buy a private car for extreme case use (the three yearly trips you do to London). This means that it spends more time parked than being used. Then take into consideration the resources required to build the very same vehicle and how those resources could be reallocated to the development and integration of more effective modes of mobility, not to mention natural resources,” Ruslan says.

MaaS can also improve mobility for those who do not have access to a car or who are unable to drive. It provides a more accessible and affordable alternative to traditional transportation options, significantly reducing the cost of transportation for individuals and families. This can benefit low-income households and those with disabilities.

The challenges of implementing MaaS

Although MaaS has the potential to transform the way we move around our cities, it also presents a number of challenges. There are many different modes of transportation, each with their own set of providers, regulations, and payment systems.

Integrating all of these modes into a single platform is a difficult task that requires collaboration and coordination between various stakeholders.

Another challenge is the need for interoperability between different transportation services. Ensuring a seamless transition between two or more services can be challenging, as each service may have its own payment system and user interface.

Moreover, since MaaS involves the collection and processing of large amounts of personal data, there is the need for strong data privacy and security measures.

Who is driving MaaS adoption?

For mass MaaS adoption to work, Ruslan stresses, stakeholders must realise that while the private car has been around for the last 120 years, with our cities redesigned and built for the private car, this is no longer feasible.

Shoehorning a massive societal change in a shorter timeframe is not possible without government involvement, from a regulatory and infrastructural point of view.

“Cities need to plan and develop mobility frameworks that enable MaaS providers to frictionlessly deploy and provide their services to share/gather user data and create a feedback loop with the government to consult and guide on future infrastructural developments. From a B2C standpoint, it is predominantly the under-35s who are driving MaaS adoption. We’re not seeing adoption by the older generation. Furthermore, corporate entities need to be thinking about implementing mobility policies internally to take advantage of the benefits of MaaS and can start doing so by going through a checklist on how to implement a mobility budget.”