Both are authorised to carry passengers in passenger cars, but the regulations differ in almost every other respect:
- Booking. Taxis can pick up passengers by hailing them on the street or at a taxi rank; ride-hailing services operate solely on a pre-booked basis (via an app or prior booking).
- Fares. Taxi fares are regulated by the local council; ride-hailing services set their own prices (in practice, those set by the platform).
- Regulatory authority. Taxis are essentially regulated at local council level; ride-hailing services operate under a national licence, with their urban operations regulated by the autonomous communities under Royal Decree-Law 13/2018.
- Scope. A taxi licence ties you to a specific municipality; ride-hailing services are registered in a province, subject to the 80/20 rule within their autonomous community.
As an investment, they also behave differently: the taxi market is local and highly regulated in terms of transfers, whilst ride-hailing services have a more flexible secondary market linked to demand on the platforms. At VTC360, we specialise exclusively in ride-hailing assets.
LAST REVIEWED · Jul 19, 2026 — VTC360 guide: general criteria, not advice for your specific case.