1.     Discipline.

In Italy, rental services with a driver fall under the category of unscheduled public services, as defined by Article 1 of Law No. 21 enacted on the 15th of January 1992. These services are defined as those “that offer group or individual passenger transport, complementing and supplementing scheduled public transport via rail, car, sea, lake, and air. They are carried out upon request, in a non-continuous or periodic manner, following routes and timetables established as needed by the transported individual”.

 

In accordance with the regulations mentioned above, the service has the following features:

  • it is designed for specific users who make a specific request (art. 3);
  • the parking of the vehicles must take place within garages or at docking wharves (art. 3) 
  • the carrier's operational headquarters and at least one garage must be located in the area of the municipality that issued the authorisation (Art. 3);
  • transport bookings must be made at the depot or premises, this also includes requests made through the use of technological devices (Art. 3 and Art. 11(4));
  • the number and type of vehicles to be used for the service, the manner in which the service is to be carried out and the requirements and conditions for issuing the authorisation to carry out the service are set out in municipal regulations (Art. 5);
  • the authorisation to operate the service is issued by the municipal administration by means of a public call for tenders (Art. 8);
  • an electronic record of the service sheet must be completed and kept by the driver, which must show (i) the vehicle's registration number, (ii) the driver's name, (iii) the date, place and kilometres of departure and arrival, (iv) the service start time, destination, and end time, (v) the service user's data (Art. 11)
  • transport may be performed without territorial limits (Art. 11 para. 4 and 13);
  • the transport fee is directly agreed upon between the user and the carrier (Art. 13) in compliance with the Ministerial Decree of the Ministry of Transport of 20 April 1993;
  • the provision of the service is not compulsory (Art. 13).

 

2.     The differences with taxi services

On the distinction between rental services with a driver and taxi services, Constitutional Court ruling no. 56/2020 states that:

  • for rental with driver services, there are neither tariff obligations as the fee is freely agreed upon, nor performance obligations as the request for transport can be refused;
  • for TAXI services, there are tariff obligations as tariffs are fixed and determined administratively, the compulsory nature of the service applies, and the activity is aimed at a general clientele.

 

This is confirmed by administrative case law, which clarifies that "Articles 2 and 3 [of Law no. 21/1992] outline the features and distinctions between taxi services and rental services with a driver.  It specifies that the former caters to a general clientele making direct requests, as their vehicles are parked in public places and are distinguishable from other vehicles. The fare is determined administratively based on tariffs. In comparison, rental services with a driver are aimed at users who specifically request this type of service. The service, which will be provided by the hirer, commences from the garage where the vehicles are located (as they are prohibited from parking on public roads) – and the economic conditions are to be agreed upon by the involved parties. The provision of the transport service by the hirers with a driver is not compulsory" (ex multis Council of State, Sec. I, 23 December 2015, Opinion No. 3586).


3.        Classification of the service

With respect to the classification of rental services with a driver, administrative case law states that:

  • Rental services with a driver “are characterised by the non-compulsory nature of the service, the contractual setting of prices, the restriction on parking, and often, the prohibition from navigating in areas designated for public transport. Additionally, the relevant vehicles are indistinguishable, and there is a mandatory systematic departure from the garage. These factors, in the abstract, could lean towards a more accurate classification within the sphere of private non-scheduled transport" (see Council of State, Sec. I, 23 December 2015, opinion no. 3586 cited above).
  • "Therefore, only the taxi transport services represent the distinctive features of the local public service, since the activities of rental services with a driver, like the former, are also subject to a public system of planning, quotas and prior authorisation/licensing" (T.A.R. Umbria Sec. I - Perugia, 16 February 2015, no. 68).