On the Wings of Hope

AVE at Sants Station

This essay ponders the interplay of risk, debt and optimism, with specific reference to the expansion of Spain’s high speed railway network. It summarises the renaissance of AVE expansion, reconciling different approaches to risk in the construction of transport infrastructure. The interaction of external finance within the Spanish societal structure is hypothesised as reliance on external debt with no internal counter-balances – a virtual economy characterised as Gross Domestic Optimism. The postscript asks what it means to invest in state, with reference to two evolving models – people and perception.

“On the Wings of Hope” is the final essay in a sequence of four 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 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.

AVE or Bust

Given all that has so far been described in this sequence of essays, it should be self-evident that grand public infrastructure, of the type Catalans and Spaniards came to expect in the early 2000s, can no longer be funded publicly. That the Generalitat de Catalunya’s post-Independència hiatus merely emphasised a reality first exposed by the 2008 Crisis. There is some evidence that the Generalitat, the regional government of Catalunya, had already shifted policy prior to the Referèndum, for example its 2017 proposal to replace the tolls levied on users of recently built strategic roads (those still under concession), with an annual “vignette” (tariff) paid by motorists for access to all such roads – which would generate a constant revenue stream with which to fund subsequent network development. With half these roads still administered centrally by Spain, Catalan policy would have to be shared with the Spanish government, which is itself deciding whether to maintain tolls when concession periods end. The 131st President of the Generalitat‘s personal commitment to the non-payment of tolls during 2012’s #NoVullPagar campaign, highlights how road tolls are a thorny issue in Spanish politics, not least in the wake of the recent financial failure, and consequent government rescue, of several high-profile highway concessions around Madrid. Funding the construction of new roads via private toll-raising concessionaires is broadly accepted (even if only by historic precedent), while perpetuating tolls on roads that are ostensibly already paid for resembles state taxation (even if the proceeds are hypothecated into transport projects). The resulting shift between private and public sectors has complex, long-term socio-political connotations. In the meantime, the evidence suggests that, unlike the Generalitat de Catalunya, the government of Spain has not accepted the “reality” that grand public infrastructure can no longer be funded publicly, and that it only need better risk management to achieve its pre-Crisis policies, as best illustrated by its current approach to high speed railways:

For several post-Crisis years Spain pursued ugly engineering compromises to maintain the illusion (in its Anglo-Castellano meaning of both ambition and deception) of a high speed railway building programme it could no longer afford. For example, by re-using historic railway alignments, even where those alignments mock “high speed”, as is the case for the ongoing integration of the 30 km/h Loja curves (on the line to Granada) into a network intended to reach 300 km/h. The “AVE” from Valencia to Castellón epitomised the problem: Implemented by dual-gauging (Iberian and International) one of the existing two tracks, (International gauge) AVE trains operated no faster than other trains on the same track, thus offered no additional utility beyond what could have been achieved by simply passing the AVE rolling stock through a gauge-changer. The claim that Castellón had been added to Spain’s high speed railway network was met with a good degree of Valencian cynicism, and did nothing to assuage the view that the government in Madrid ascribed a low priority to the Mediterranean Corridor (along the east coast).

2018 heralded a return to pre-Crisis high speed railway building, particularly in the north of Spain where none of the intended network had been completed beyond Valladolid – the Crisis having left an eclectic mix of disconnected infrastructure in its wake, from stations served by no trains, to depots maintaining no rolling stock. Works agreed in 2018 include Bilbao station, the most expensive railway station project in the history of Spain, a 720 million euro investment that makes the 240 million euros lavished on the temple to AVE that is Zaragoza Delicias, look cheap.

Compared to Castilla, the geology of northern Spain increases construction costs, as the Norte discovered in the 1860s – its route from Madrid to Irun cost around 550 thousand Pesetas per kilometre, compared to 208 thousand Francs per kilometre from Madrid to Zaragoza (the two currencies directly comparable because the Peseta and Franc maintained parity via the Gold Standard – although it should be noted that the Norte was actually dealing in “Reales de Vellón”, in a decade when the Spanish currency changed twice). Modern engineering techniques, such as the New Austrian tunneling method, may make many AVE route alignments possible, but such construction carries increased geological risk, as epitomised by the Pajares tunnels on the route to León and Asturias: Construction costs have more than tripled, to over 3 billion euros, as has construction time, from the five years anticipated in 2003 to perhaps twenty – while water leaks from punctured aquifers, and relentless landslides, raise doubts as to whether the line will ever open to its intended specification.

Risk is not necessarily so visual: For example, in the case of the failed highway concessions around Madrid, land purchases were budgeted on the assumption the land was categorised as rural, however that land was ultimately judged urban, greatly inflating the cost of acquiring it. Similarly, project management, even of relatively unambitious projects such as Girona’s concrete box of an AVE station, can get bogged down in local political disputes – not to mention the equivalent project in Barcelona, which was stalled for several years by anti-corruption audits. That ADIF-AV budgeted half a billion euros in 2017 to deal with litigation by its own construction contractors paints a dismal picture.

In 2017 the Spanish government legislated to moderate risk in public contracting: To spread risk across more contractors by encouraging the participation of smaller contractors through the contesting of more minor contracts, splitting large contracts, and measures such as ensuring prompt payment and improving transparency. And in parallel, to transfer risk to contractors, notably by limiting the modification of contracts with the private sector to no more than 50% of the original bid price. On genuinely risky projects, this dual policy of spread and transfer naturally tends to contradiction, since only larger companies can carry larger risks. Mid-sized construction companies remain unconvinced that the Spanish government’s approach to procuring transport infrastructure has actually changed. That the new legislation is simply patching up the cracks in the original (internal societally structured) model, is borne out by the counsel of the larger Spanish construction companies, who consider risk as a far more fluid, flexible component of project financing than the government: Shifting risk to reflect the capacity of each sector to manage it, adding value through the private sector management of projects over a longer period than the political electoral cycle, and conversely reacting faster than the public sector to offer short term flexibility. Not least because of their temporality, these are unmistakably lessons from the external, globalised environment in which these companies now operate.

Since the Crisis of 2008 Spanish construction companies have learnt to thrive in markets outside of Spain, their global dominance now second only to China: Their technical competence is not in doubt, nor is their ability to work effectively in different societal and administrative environments. Which makes their domestic environment all the more intriguing. Spanish national transport infrastructure is theoretically ripe for the application of externalised risk models:

  • The Spanish construction industry are both willing and able to adjust to more external organisational models. That adjustment does not necessarily suppose a radical change in epistemology. Rather that the internal societal model of knowable groups has the potential to be arranged differently, should it be exposed to a different environment.
  • The existing internal societal model has never worked well at the scale of national transport infrastructure, as described in The Expectations of Competition. Indeed the purpose of such transport infrastructure’s “presence” is precisely to bind groups that cannot know one another through the base societal “family” model.
  • The theological root of infrastructure presence – the boundary at which the state manifests the external (God) in nature – is surely just as capable of delivering alternative external concepts.

The inhibiting factor is elementary: The nation of Spain, by Westphalian definition, cannot be global. Spain, like other sovereign nations, is predicated on its ability to differentiate itself from the global whole. Since every element of the external that Spain accepts weakens itself as an entity, it is crucial that it uses external elements to strengthen itself as an entity. Since losing the European intellectual hegemony to the Dutch Republic, the question of what strengthens itself as an entity has plagued Spain, because its internal strength manifests in a different manner to the way the external (at least northern European) world measures strength. AVE is a contemporary example – its presence strengthens the internal idea of Spain, while its utility strengthens the external notion of economy. In practice a compromise between these internal and external assessments which perhaps satisfies neither adequately. A relentless tension – here between presence and utility – rather than a happy equilibrium be found, with respite ominously implying isolation. Given the stakes, exposure to externalised risk is moderated by the state: Unfettered external finance could weaken Spain more than it strengthens her, or might negatively alter the balance between presence and utility.

Continue reading “On the Wings of Hope”

Advertisements

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”

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”