Public Competition in Post-Independència Catalunya

Camp del Ferro

This essay examines how the art of public competition functions when one of its most important competitors is absent. The suspension of policy-making within the Generalitat de Catalunya, following the region’s failed bid for independence, provided an almost unique opportunity to observe the strategic processes and limitations of the art of public competition. The optimistic finances of metro line 9/10 set the context, followed by analysis of the reactions of the city and metropolitan area of Barcelona to the Generalitat’s hiatus. That analysis exposes vast differences in the funding models of higher and lower tiers of Spanish government, which can be traced to the availability of externally-financed debt.

“Public Competition in Post-Independència Catalunya” is the third in a sequence of four essays titled, “The Art of Public Competition“, which together explore the competitive model underlying Spanish public transport. An anthropological analysis of the tension between this internal model and that of globalised economics, reveals the distortion of external finance on the internal workings of the art of public competition. The first essay in the sequence establishes the policy context for the liberalisation of public transport in Spain. The second explores the workings of the art of public competition using the example of interurban buses around Barcelona. The final essay ponders the strategic interplay of risk, debt and optimism, using the example of Spain’s high speed railway network.

Beyond Line 9/10

Like many of Spain’s regional Autonomous Community governments, the Generalitat de Catalunya’s initial reaction to the 2008 financial crisis was to maintain many prior expenditure commitments by borrowing, with debts rapidly rising from a baseline of around 8% GDP to around 35% of GDP by 2014. Roughly half this borrowing now occurs through the nation of Spain, using a mechanism called the “Fons de Liquiditat Autonòmic” (Autonomous Liquidity Fund, FLA) which allows regional government to borrow on broadly similar terms as the parent country, and thus benefit from Eurozone rates, which in this period were close to 0%. FLA funds come at the cost of fiscal autonomy, since the autonomous community’s plans for debt reduction must be approved by the Spanish government. The other half of the debt is sourced directly, commonly from commercial banks, which in Spain have traditionally had a strong civic investment function. The biggest single debt within the Generalitat’s total is that of Ifercat, the Catalan agency tasked with new public transport infrastructure: 4 billion euros of debt, roughly 5% of the Generalitat total. Half Ifercat’s debt is owned by the European Investment Bank, a non-commercial EU institution.

Aside from a 45 million euro project to rejuvenate the Lleida-Pobla de Segur railway, a line historically notable as the epitome of politicised infrastructure, Ifercat’s only practical project was Barcelona’s Line 9/10 metro route. Over-ambitious from the outset, both technically and financially, the “longest metro line in Europe” followed an all too familiar pattern of costs spiralling out of control in an environment of inadequate risk management. Ifercat pursued increasingly desperate funding mechanisms to keep their project alive in the face of the worst global financial crisis in a generation. Instead of using the private sector to mitigate construction risk, or using the private sector to deliver the desired transport system as a single build-and-operate concession, Ifercat sought short term liquidity simply to keep construction underway. And ultimately the money still ran out, leaving an incompete tunnel right in the middle of the route – a tunnel which is still inhabited by a pair of Tuneladores (TBMs) that haven’t moved since 2011. Such an incremental approach to funding inevitably led to poorly structured debt, notably creating many “hidden” liabilities, above and beyond the headline of 4 billion euros.

In 2014 Independents de Qui attributed Ifercat with another 1.8 billion euros of future guarantees to public companies, but that value transpires to be a fraction of the total additional liabilities: Between 2008 and 2010 batches of Line 9/10 metro stations were sold as 30-year concessions, typically to consortia of those companies building the stations, with the money raised by the sale ostensibly used to keep paying the builders to build those stations. The concessionaires levy an annual charge for providing and maintaining their stations – totalling around 250 million euros annually, an anticipated 7.6 billion euros in total. That figure seems infeasibly high, equivalent to the fare revenue of the entire Barcelona metro system. For context, in 2016 (including the first 10 months of passenger service to the airport) Line 9/10 conveyed just 4% of all metro passengers. The exceptional cost of these concessions is partly explained by concessionaires funding their initial purchases through commercial banking – the rates of such loans were inevitably less favourable than the Generalitat might have achieved itself, had it been able to raise the money through the FLA. This difference was accentuated by the political vacuum in the wake of the Catalan independence process: FLA finance reflected the overall stability of Spain, while the commercial loans of the concessionaires reflected the future ability of the Generalitat to pay the concession fees: Not only was the Generalitat less politically stable (and thus more risky) than Spain overall, but its Line 9/10 concessionary payments were somewhat less integral to the institution of the Generalitat, hence more risky, than Spanish bonds to the nation of Spain. Concessionaires consequently found themselves unable to refinance their debts, adding to the overall precariousness of the Line 9/10 finances.

Operator “Ferrocarril Metropolità de Barcelona”, Transports Metropolitans de Barcelona’s (TMB) metro, also carries a significant burden – in so far as it clearly identifies in its accounts, 75 million euros annually for leasing trains and a further 53 million in Line 9/10 “fees”. The lease presumably includes all the 9000 Series trains built for Line 9/10, in spite of only 28 out of 55 trains currently operating there, so presumably only half of the lease cost should be apportioned to Line 9/10, giving a total of 90 million euros annually. As documented in Interurban Buses in Public Competition, TMB‘s budget is managed through ATM, which is funded from roughly equal parts fares revenue and government support, with about half of that government support coming from the Generalitat. Such accountancy primary serves to shift the Generalitat’s past capital budgetary excesses into the current revenue stream, and in the process makes TMB’s metro look far more dependant on government support than it would be if it hadn’t been saddled with Line 9/10. That arrangement surely serves wider political agendas, but as we shall highlight later, TMB metro’s dependency on the Generalitat is broader than just Line 9/10.

Belatedly Ifercat (as the Generalitat de Catalunya) has been reduced to barter, trading land with the Ajuntament de Barcelona (the city government) to raise the money to complete a handful of stations on the Zona Franca branch. Line 9/10 was the final grand project of Jordi Pujol, who dominated Catalan politics through the “Olympic” Golden Age of the 1980s and 90s. However, post-Crisis, the Pujol agenda of grandiose (“pharaonic”) Catalan ambition evolved into a quite different hope of Catalan Independence, and for Pujol’s successors Line 9/10 became a slightly unnerving ghost from the past – albeit one still pending the traditional Spanish political exorcism called the corruption trial. The post-Referendum political hiatus in the Parlament de Catalunya stalled even the fig leaf of a new bid to the European Investment Bank for another 750 million euros to complete the central section of the line. However judging by his subsequent media appearances the holder of that fig leaf, Ricard Font, who is a common thread between many government transport interests within Catalunya, was not idle following the Generalitat’s fall from grace in November 2017. And he was not alone.

Herein lay the shifting sands of post-Independència Catalunya, an administrative void hitherto controlled regionally by the Generalitat, suddenly contestable, perhaps for the first time since the 1970s. While it is convenient to categorise the exercise of power through discrete organs of state, it is common for leading individuals to serve in many organisations. Indeed it is common for such individuals to shift between political, administrative and academic functions throughout their careers, in a way that, for example, the British civil service would not tolerate. It is therefore more instructive to understand the role of these individuals as an extension of Catalan society. Catalunya’s administrative institutions strongly reflect Catalan society, not least because they require their staff to be able to communicate in Catalá – which is not widely spoken outside Catalunya, so (for better or worse) affords substantial protection. At its higher echelons, Catalan society is virtual – where being seen to, to be in control of, these are the rewards – a monetary salary is almost incidental. The longer the Generalitat remained paralysed, the less important its civil service positions became within Catalan society, regardless of whether wages continued to be paid. And thus perhaps without even analysing their motivation, senior individuals within the Generalitat logically sought somewhat similar roles through other institutions. Given the pre-existing tendencies to switch and accumulate roles, their search was perfectly intuitive. That starts to explain why this sequences of essays is subtitled the art of public competition: For what at first looks like a power battle between institutions is far more subtle, far more human – and that in turn makes it harder to analyse and understand from an external perspective, especially an objective one.

Continue reading “Public Competition in Post-Independència Catalunya”

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Interurban Buses in Public Competition

Exprés.cat

This essay explores the workings of the art of public competition, in search of the reasons for its conflict with liberalisation. It details the interurban bus “market” serving Barcelona’s hinterland, with reference to passenger usage, historical policy, administrative structure, and comparative costs. Analysis suggests a dualistic form of counter-balancing competition on key routes, regulated by the need to maintain equality between operators – albeit an equality bounded by the operators’ focus, which often masks an inequitable distribution of public funding within public transport overall. A pattern conflated by the tendency to emphasise only short run operating costs, and sometimes rely, almost blindly, on higher tiers of the state for fixed assets.

“Interurban Buses in Public Competition” is the second in a sequence of four essays titled, “The Art of Public Competition“, which together explore the competitive model underlying Spanish public transport. An anthropological analysis of the tension between this internal model and that of globalised economics, reveals the distortion of external finance on the internal workings of the art of public competition. The first essay in the sequence establishes the policy context for the liberalisation of public transport in Spain. The third examines how the art of public competition functions when one of its most important competitors is absent, using the case of post-Independència Catalunya. The final essay ponders the strategic interplay of risk, debt and optimism, using the example of Spain’s high speed railway network.

Exprés.cat

Given its thwarted railway ambition, it would be logical for the Generalitat de Catalunya (the regional government) to become more focused on (scheduled, public) interurban buses – which when combined with autopistas (motorways) can be competitive against railway journey times. The reality is not so simple. The Exprés.cat network was initiated in 2012 as a (peak-only) commuter service intended to make use of a new High Occupancy Vehicle lane on the C-58 autopista, a busy road that links the north side of Barcelona to Sabadell and Terrassa – territory already well served by both Renfe and FGC. Thereafter (Barcelona area routes e5 and later from 2013) Exprés.cat became largely a rebranding exercise (of marketing and vehicles) for pre-existing moderate-to-high frequency interurban bus services, albeit with some marginal improvements to frequencies or hours of operation. So while the Exprés.cat network does include key Renfe Rodalies destinations such as Vic, Mataró and Vilanova i la Geltrú, and covers the Mataró-Granollers-Sabadell corridor where the Generalitat had once hoped to build as a transversal railway, it also serves Igualada, an FGC terminus.

Expres.cat patronage data for 2017 can be be roughly compared to (the most recent) 2016 railway station usage data. FGC categorise journeys by station of origin, while Renfe provide separate totals for boarders and alighters. Renfe data for Rodalies line 3 exhibits significant differences between boarders and alighters – for example, twice as many passengers alight at Vic than board, while further up the line at Puigcerdà, ten times more people get on than off – skews not explained by underlying geography. To mitigate this error, Rodalies boarders and alighters have been summed and halved for purposes of comparison. While the nature of the Expres.cat network means almost all journeys counted will be to or from Barcelona, railway station data includes journeys involving intermediate stations. 34% of all Rodalies boardings (and 34% of all alightings) occur at Barcelona’s central stations, with a broadly similar proportion – a third – recorded by FGC. Assuming journeys between Barcelona’s central stations are negligible (such journeys will tend to use metro or bus), a third of all journeys board in Barcelona and a third alight in Barcelona, leaving a third that do not involve Barcelona at all. Ergo at any non-Barcelona station, half the journeys can be assumed to involve Barcelona. Assuming each of those boardings returns to its origin as a second journey, the total number of journeys between any non-Barcelona station and Barcelona is (conveniently) equal to the total number of boardings at the non-Barcelona station. While inevitably flawed in the detail, these assumptions allow rough comparisons of public transport mode share.

The table below compares Exprés.cat with the train on routes where both compete directly. Together these routes conveyed 6.3 million Exprés journeys in 2017, representing just under half of the Barcelona Exprés network’s ridership. The remainder of the Exprés routes do not match railway services sufficiently closely to warrant comparison (or in the case of Mollet del Vallès only started operation during 2017 and lack representative patronage data).

Annual Passenger Journeys (000s) by Exprés.cat and Train to/from Barcelona
Town Route Exprés FGC Renfe % Exprés Note
Sabadell e1 172 2190 3666 3 Exprés service is peak only.
Terrassa e2 89 3427 2705 1 Exprés service is peak only.
Universitat Autònoma via Cerdanyola del Vallès e3 839 1646 2820 16 FGC only serves Universitat Autònoma.
Igualada e5 872 191 82 Exprés patronage includes other services on the same corridor (see below).
Vilafranca e6 268 878 23
Mataró e11 1596 2378 40
Vic e12 541 736 42
Sant Pere de Ribes, Vilanova i la Geltrú and Sitges e14-6 1950 4391 31 Sant Pere de Ribes is not served by rail.

Igualada patronage includes other services on the same corridor, totalling over a hundred weekday departures in each direction, only about a quarter of which are Exprés services. However even a quarter of the quoted patronage would give Exprés a greater market share than FGC. This skew in favour of the bus is rational:

  • The railway station is on the east side of Igualada, not well sited for much of the town, in contrast to Exprés, which serves both east and west.
  • The Exprés travels to Barcelona in 70 minutes, while FGC takes at least 84 minutes, with broadly comparable frequencies.
  • Fares are identical for both modes (within the ATM system).

Vilafranca’s Exprés service is provided by the same operator, Monbus La Hispano Igualadina. It also has a small journey time advantage over rail, with broadly comparable frequencies in the peaks, but obtains a far lower market share – just 23%. The most obvious difference from Igualada is the location of the terminals – both rail and bus serve the centre of Vilafranca equally well. Indeed, the railway has generally better access to the centre of Barcelona, which for many journeys will offset the extra time spent travelling by train. On both these routes mode choice can primarily be explained by the transport economic logic of time minimisation, where the service associated with the lowest total (door-to-door) journey time tends to obtain the greatest market share.

The competition on the Mataró route is extremely mature – the railway is the oldest in mainland Spain, and the bus has been competing along the autopista since 1970. Journey time, frequency, terminal access and fare are close to identical for both bus and train – a pattern established by the Moventis group after buying Casas in 1996. The Rodalies secures the greater 60% of the market. A similar market share is achieved on the route to Vic, where the railway’s limited (single-track) infrastructure could make it vulnerable to high frequency bus-based competition – but in practice bus and train offer similar frequencies (with similar journey times) during the peak. Vic’s population is a third of Mataró, so neither the bus operator Sagalés, nor the rail operator Renfe, can expect to sustain Mataró-level frequencies from a much smaller base market. Short-run competition might lead one operator to attempt market domination by temporary over-supply of service (a form of competition seen in the early years of British bus deregulation), but with operations guaranteed in the short run (by a public mandate, such as a concession), competition can only occur in the long run. Where key competitive factors (fare, time, terminals) are similar for both competitors, a long run equilibrium emerges where each competitor offers a similar service and achieves a similar market share. Based on the Mataró and Vic routes, that equilibrium is currently slightly skewed towards Renfe, possibly by an intangible or irrational factor (such a social status bias towards rail travel). The equilibrium remains dynamic – for example an improvement by one operator, such as in vehicle quality, must be broadly matched by the other – and thereby competition serves to keep each operator “honest”, to keep their product offer current. As this sequence of essays progresses, it will become clearer that the “product” in this competition is more than just its transport utility, and that in turn makes this model of competition much more political and strategic than this initial economic introduction implies.

The Sabadell and Terrassa routes suggest that Exprés services that are unable to match the offer of the railways, risk achieving no tangible share of the market: Here journey times are similar (30 minutes from Sabadell, 45 from Terrassa), rail frequencies are better (typically every 10 minutes on both of two different railway lines, compared to 20 minute Exprés headways), and the railway has better access to the centre of Barcelona. On a rough calculation, vehicle occupancy on the Terrassa service averages just 7 passengers. Sabadell twice that, but still an underwhelming performance from one of the most highly trafficked interurban corridors in Spain. Cynically, these two routes serve only to justify the existence of the high occupancy vehicle lane they use. Neither route reflects well on its operator, Moventis Sarbus, which is apparently unwilling or unable to compete effectively. But since price and time are impossible to differentiate, they might reasonably retort – how? Well based on observations from other Exprés routes, match the railways by doubling or quadrupling the Exprés services’ frequency, and perhaps improve access to the centre of Barcelona. In theory both Sabadell and Terrassa have sufficient population (roughly 200,000 each, compared to Mataró’s 125,000) to sustain such high frequencies. Thus the question to ask is not how, but, why haven’t they?

In both Sabadell and Terrassa the competition between public transport operators has historically been between the two railways, FGC and Renfe’s Rodalies, as reflected in the patronage data presented above. Sabadell and Barcelona were historically also connected by bus, but only by a route intended to serve intermediate places – the A1’s one hour journey time and half-hourly frequency logically dissuades through passengers. FGC’s Sabadell service is less direct than Renfe’s, although the Generalitat has attempted to mitigate that by the 2016/17 extension of the FGC line within Sabadell, the results of which are not indicated in the (2016) patronage data. Thus to Sabadell and Terrassa, the competitive model outlined above functions as a railway duopoly. A third competitor, in the shape of a competitive Exprés service, adds nothing that the competitive model does not already achieve from its existing duopoly. That’s quite a statement to make, because a bus operator, whose buses typically have lower (full life) costs than trains, and whose infrastructure costs are distributed across many more users (especially private motorists), could compete here on journey time – and thus given a commercial market could challenge the (relative, monetary) inefficiencies of incumbant railway operators. But this market isn’t commercial: All this public transport is at the bequest of, and in substantial part paid for by, the public sector.

The Sabadell and Terrassa Exprés services are anomalies that logically will never be supported sufficiently to attain their (commercial) potential. That these routes were ever created is thus curious. As is the current intention to repeat the concept for Manresa – another strong railway duopoly and another peak-only Exprés service. The development of the Sabadell service may reflect the post-Crisis financial difficulty in completing FGC’s Sabadell extension – perhaps an attempt to try something different. Wider policy logic would seem to be utilitarian, although it can also be interpreted as the need to be seen to: The need to (be seen to) make use of the new High Occupancy Vehicle lane on the C-58 autopista, and the need to (be seen to) incorporate two of the largest cities in Barcelona’s hinterland within the coverage of the Exprés network. The utilitarian defense of transport that often isn’t, will become a recurrent theme of this sequence of essays – a function of an underlying tension between two different ways of societal organisation – of understanding, first touched on in earlier discussion of presence.

Continue reading “Interurban Buses in Public Competition”

The Expectations of Competition

Estació de França

This essay establishes the policy context for the liberalisation of public transport in Spain, with specific reference to the recent history of Barcelona’s railways. The text introduces three difficult policy areas for Spanish public transport competition – local system integration, the balance between nation and communities, and the understated role of presence. It questions both the applicability of super-regulatory structures to a state where power is not absolute, and the use of economic analysis to rationalise transport infrastructure that primarily serves a strategic function, instead suggesting a role for the state’s own form of internal competition, here called the art of public competition.

“The Expectations of Competition” is the first in a sequence of four essays titled, “The Art of Public Competition“, which together explore the competitive model underlying Spanish public transport. An anthropological analysis of the tension between this internal model and that of globalised economics, reveals the distortion of external finance on the internal workings of the art of public competition. The second essay in the sequence explores the workings of the art of public competition using the example of interurban buses around Barcelona. The third examines how the art of public competition functions when one of its most important competitors is absent, using the case of post-Independència Catalunya. The final essay ponders the strategic interplay of risk, debt and optimism, using the example of Spain’s high speed railway network.

Regulating Integration

To integrate transport is surely to promote a human antithesis. Integration implies one optimised model of transport provision akin to a perfectly engineered machine, where all the mechanisms mesh seamlessly. Integration is the thesis of a transport economics for which demand is derived, meaning transport is solely a means to an end. Its rational ideal is to eliminate transport completely, since all such transport activity is economically wasteful. Hence for economists, transport becomes a component of the economy which can be dehumanised without impact on the humans, flattened into one perfect mathematical form that supposedly liberates the wider economy to operate without the inefficiencies of its transport system.

Unfortunately for transport economists, their presumption of the dominance of rationality is too often irrational: Modern behavioural economics is awash with examples of irrational transport decision-making, from the status value of automotive brands, to the role of the daily commute in pacing life. Ergo transport actually encompasses the fluidity of humanity. That fluidity is contemporarily expressed in duality, as a perpetual rebalancing somewhere between one collective perfectly integrated transport system, and the total flexibility of unfettered individual choice. Since neither extreme position can (by our definition of fluidity) be sustained, transport is not to be definitively solved, but to be constantly evolved. And if a perfectly integrated transport system can, logically, only evolve through a process of de-integration, perhaps an ultimate objective of transport integration is misguided?

The underlying pattern goes broader: As transport demands becomes more flexible, the environment is perceived as more complex. To counteract this sense of unknowable complexity, the transport solutions demanded are more stable, where stable is inevitably less flexible. From Personal Rapid Transit to App’-centric goods distribution, technology appears to be skewing transport towards individual choice, and thereby fostering a far more intense competition for physical space than when the issue was just individuals’ cars. Cynically, integrated transport is primarily being promoted not because it can be achieved, but because its promotion simply opposes the prevailing technological tide of individual choice: Such a crude counter-balance reflects a lack of strategy for proactively managing everything from hoverboards to automated flying delivery crates. Proactive management is often at odds with a profession inclined (ironically) to attempt to fix transport systems (in infrastructure and schedules), not to perpetually juggle them. Simply “swimming against the tide” is a pragmatic policy response that may deliver a mathematical balance, but it gradually polarises policy positions toward their extremes. That ultimately makes it very difficult for the polis to find compromises acceptable to all, engendering sudden, dramatic policy changes that half the citizens completely disagree with. Good, living, politics is the ability to accommodate the wills of all the people, not the arbitrary imposition of the will of a majority. Catalunya’s Procés provides ample evidence of how poorly “democratic” structures deal with excessively binary policy positions.

European Union transport policy exemplifies this conflicted balance between the collective and the individual, in promoting transport integration through market competition: For the EU, competition is the agent that will minimise the unwanted economic inefficiencies of the transport system. Yet because active competition requires an element of choice, the transport system cannot be completely integrated. Monopolies, even mere collusion on fares or schedules between commercial enterprises, are typically interpreted as anti-competitive – a pattern exacerbated by the natural tendency of the transport industry toward economies of scale, especially geographical and temporal. Integration requires a degree of regulation, even where transport provision is otherwise highly liberalised.

For example, integrated ticketing between British bus operators (except in London, which was never deregulated) rests on a specific opt-out from European-derived competition legislation, currently regulated by the Competition and Markets Authority (a government agency operating without direct political control). Integrated ticketing is typically delivered through joint companies (often owned by local government and bus operators), that offer multi-operator ticket products at higher fares than those sold by individual operators, so as not to impede commercial competition. In practice the development of integrated ticketing schemes must balance policy aims with commercial aims – and often the administrative complexities of integrated ticketing outweigh the tangible customer demand for it. Of course that formal argument is often underpinned by the long running battles for control of the public transport system – especially in conurbations, where local government typically regards the 1980s privatisation of its local bus operations as an unwelcome imposition by United Kingdom (central) government. UK integrated public transport ticketing may be better understood as a policy battleground in the ongoing conflict for the administrative control of Britain, broadly between centralism and localism – a recurrent theme of the governance of Britain throughout the 20th century.

Regulation is justified in the public interest – for the people the government represent. This role of deus ex machina supposes government an impartial observer, somehow above the fray of the very society that government is constituted by. In practice such a regulator also needs effective regulation, else risks inflating into a form of totalitarianism, especially where that regulator operates outside of the political system. The practical solutions to this dilemma reflect the societies they evolve from. For example, Britain’s mechanised social structure affords clear lines of transactional responsibility – although as the structure becomes more complex power rises inextricably towards the centre, which struggles to process such complexity, even with the numeric quantification of everything. Europe, as exemplified in its competition policies, can operate within pre-defined toolboxes built on economic theory – which theoretically perpetuate without political influence, but are constrained by their inevitably inadequate theory of living society. In contrast, Spain’s traditional “family” (for want of a better term) social model doesn’t scale into a mechanised state, nor is her policymaking inherently predictive. As explored in this sequence of essays, modern Spain’s solution to the need to regulate the regulator is, in effect, to foster a competitive environment between public bodies. This is particularly apparent in the arena of transport. As one of the most important physical manifestation of “the state” in Spain, transport expresses power of greater importance than its utilitarian function might suggest.

Continue reading “The Expectations of Competition”

El Procés in 7 Photographs

Parliamentary Selfie

This photo-essay summarises the Catalan independence process by reference to seven photographs that trace events from the 11th September rallies to the aftermath of Catalunya’s December 2017 regional elections. This is a more accessible text than the original Patria and Patrimonio sequence, which started with The Act of Referèndum. This photo-essay also serves as a postscript, outlining the events in November, December and January. Continue reading “El Procés in 7 Photographs”

Why Barcelona has no Uber

Mobile World Taxi

Barcelona is one of the few major European cities where Uber, the mobile phone application-based ride sharing and taxi service, does not operate. Of comparably populous cities only Hamburg is currently Uber-less. Doubly confusing as Barcelona prides itself as host of the world’s largest gathering of the mobile technology industry, the World Mobile Congress. An irony not lost on visiting journalists as they queued at the airport for insufficient taxis.

On the face of it this is classic schizophrenic Barcelona: An Olympic image marketed to the world, which becomes fundamental to the vanity of the city’s population, even when that image brings detriment to that very same population. Vanity is so deeply embedded in Barcelona’s social structure as to render a schizophrenia, not mere conflict or paradox which can at least be acknowledged and rationalised. A recurrent theme, most obvious in the inability of the Ajuntament (city government) to regulate AirBnB rentals to tourists, sold on an exported image of Barcelona, that has the consequence of forcing the actual residents of Barcelona out. The imposters from Silicon Valley are guilty of nothing more than exposing a social hypocrisy. And exploiting it ruthlessly, secure in the knowledge that the disaffected cannot turn on what they cannot acknowledge, hence only on each other. A heinous crime that cannot be fairly judged because both actions exemplify their own moral good: Silicon Valley is optimistically building a better tomorrow, its Disneyland reality disguising anything that isn’t. Much as Barcelona’s hopefulness has been wedded to becoming a global city, its schizophrenia its defense against the social threats inherent in globalisation.

Uber’s official response, which bears the same title as this article, predictably eschews all that political philosophy, opting instead to reinforce some familiar Anglo-American stereotypes about Spanish regulation, under-employment, de-emphasis on utility, and general lack of free market liberalism. Indubitable, but ostensibly fails to explain why Barcelona has no Uber when Español-centric competitor Cabify is present in the city. Which is a shame, because Uber España reveals a lot about how chaotically Spanish policymakers are managing this relatively new exposure to the external world. And for a State premised on stability, the accusation of chaos is high treason indeed. But any inquisition will have to join the queue, right behind a notoriously aggressive startup and some rather volatile Taxistas. What is it about the taxi business that fosters so much hostility?

This article describes the tech disruption of the taxi business, explores why Uber’s initial incursion into Barcelona failed, analyses the limits on VTC licensing, and finally makes time for change. Continue reading “Why Barcelona has no Uber”

Bringing Up the Rear

I positioned myself at the top of Carrer dels Tres Pins, because that’s the steepest climb on the Montjuic circuit, attracts the most passionate fans, and slows the motion down to a digestible pace. Of course that motion was still a bit of a blur. Every few minutes a different leader hons into view. You look into their eyes, sense the importance each places on not being caught by those just behind. Then they crest the corner, and accelerate away. Eight loops makes this the ideal spectating option, since the ebb and flow of the race can be read without a television. Although you’d need a television to obtain the result: On the final lap Froome had just attacked coming up the climb, but 5 minutes later it was Valverde taking the win.

It transpires that one does not spectate to see the race, as much as to see everyone else that sees the race. And the action you remember is equally personal. The small details that don’t get broadcast. I have illustrated two. Continue reading “Bringing Up the Rear”