The VTC Sector: Rapid but Uncontrolled Growth

In Casablanca, Rabat, or Marrakech, a simple click on an app is all it takes for a car to appear within minutes, ready to take you wherever you wish. 

Long dominated by traditional taxis, this type of Moroccan urban transport has for the last few years seen the irruption of VTCs (chauffeured transport vehicles), driven by local and foreign platforms. 

The service especially appeals to a connected clientele, tired of taxi drivers’ moods and sometimes unpredictable journeys. 

According to a study conducted two years ago, 18% of Moroccans use VTC services. And 4.5% of them are regular users. Still according to this survey, 97% of users are satisfied with the quality of service and 95% say they feel safe. 

The supply has exploded: thousands of drivers have rushed into this promising market, often with no other formality than a driver’s license and a working vehicle. According to estimates from the association created by VTC drivers, the sector now has 85,000 active drivers across the various platforms. 

The geographic distribution shows Casablanca in the lead with 12,000 drivers, followed by Rabat with 6,000 and Marrakech with 4,500. Furthermore, there are eight apps, including InDrive, Yango, Yassir, and also Toogo. It is worth recalling that Uber was the first to launch in this market in 2015. 

Two years later, the drivers founded the Moroccan VTC Association to ‘structure the market’ and protect their rights. However, this initiative has not shielded the sector—which is today experiencing a ‘noteworthy evolution,’ according to the association—from numerous dysfunctions. 

‘This activity is informal and is characterized by total anarchy. The market is progressing outside of any regulation. Among the anomalies, one can cite the registration conditions with the platforms, the absence of transport licenses, variable pricing, and unstable incomes. Not to mention the head-on confrontation with taxi drivers and the ambiguity of the public authorities, which explains the legal gray area in which we find ourselves,’ it is said at the association. And to add: ‘It is to remedy all of this that we are calling for a comprehensive reform to organize the market, protect drivers, and secure passengers’.

An informal sector with unclear rules…

If the promise of VTC is that of a structured and transparent service, the Moroccan reality is quite different. Thus, the registration conditions with the platforms often boil down to sending a copy of the national ID card, the driver’s license, and the vehicle registration card.

The members of the association lament ‘the absence of serious administrative control. And the platforms that initially required the status of a self-employed individual now overlook this condition’. As for the pricing, which is supposed to follow uniform rules across all platforms, it is also subject to abuses.

‘Many drivers negotiate directly with passengers, offering a flat rate for the ride to avoid the commissions taken by the apps,’ reports a member of the association. The result: price differences, sometimes significant, are noted from one trip to another, to the detriment of the transparency promised at the outset.

It should be noted that the commission also differs from one application to another. For example, at InDrive, it is around 11%, while other operators take between 10% and 23%. This commission is supplemented by a 2% VAT.

For drivers, this economic model proves to be very fragile: without a clear status, without social coverage or appropriate insurance, and with a very variable income, since it is, according to their estimates, between 4,000 and 7,000 dirhams.

To these problems are added frictions with taxi drivers. As holders of a license and subject to strict regulatory obligations governing the profession, the latter denounce ‘unfair competition’.

In Casablanca and Rabat, for example, these frictions often translate into altercations and assaults when taxi drivers and VTC drivers cross paths on public roads.

This leads some taxi unions to call quite simply for the abolition of this service.

This disorder is maintained, in the opinion of the association, by the ambiguity of the public authorities’ position. Officially, this type of transport must be subject to a legal framework.

However, in practice, the applications operate outside the regulatory framework. Except for a few sporadic checks resulting in vehicle seizures. Which reminds drivers of the fragility of their situation. This requires, it is said at the Moroccan VTC Association, ‘a comprehensive reform of this sector and the establishment of a clear and net regulation protecting both drivers and passengers’.

A call that, according to this professional body, does not yet seem to have been heard by the public authorities. And this regulatory vacuum is exploited by new entrants into the sector, notably, as reported on the ground, ‘taxi drivers who at the end of their shift get behind the wheel of their own vehicles for a few rides, or even civil servants and employees, wishing to make ends meet, who also do not hesitate to exploit the anarchy reigning in the sector, or even car rental agencies!’.

The sector faces a dilemma: regulate the activity, which meets a demand for modern mobility, or let this disorder go on? For the VTC association, ‘the question must be settled quickly on the eve of 2030, so that we can offer quality urban transport services’.

Taxis vs VTC: The Battle of Prices

For taxis, the prices are theoretically fixed and protected by regulation. The meter is in principle mandatory, but in practice, many drivers refuse to use it and negotiate directly with passengers, particularly during night rides or trips to train stations and airports.

For VTCs, the prices are calculated based on distance and duration and are set by the applications. But some drivers bypass the app to offer a direct flat rate, often more expensive or sometimes cheaper.

Thus, a 5 km trip in Casablanca, for example, can vary between 25 and 40 DH, depending on the time of day, compared to 15 to 20 dirhams in a taxi. The taxi remains cheaper. But the transparency, availability, and comfort of VTCs are attracting more and more users despite a higher average cost.