Taxi dispute in Mallorca: How 3,600 licenses are shaking up the island

Key question: How can a right to mobility be reconciled with the value of individual taxi licenses?

In front of the Mercat de l'Olivar in Palma, you can hear the morning horns of delivery vans, the clinking of coffee cups and the mechanical hum of taxis waiting at the rank. It is here, in a daily scene pulsing between tourist suitcases and commuters, that two truths collide: a court in the Balearic Islands is demanding the processing of around 3,600 applications for ride-service licenses, as reported in Court forces Balearic government: 600 Uber licenses must be re-examined; and many taxi operators fear for the survival of concessions they have run for decades.

The facts in brief

The Balearic government faces the task of reviewing applications triggered by the Balearic High Court: in total there are about 3,600 new permits for ride-service providers. On Mallorca there are currently roughly 360 active authorizations for such providers. Industry figures say a taxi license in Palma is worth about €260,000 today. Against this backdrop, taxi drivers are threatening protests if the government must approve the new permits. The government has announced it will appeal the ruling, and coverage of proposed regulatory changes can be found in New Taxi Rules in Mallorca: Caps, Ramps and the App — Will the Plan Match the Island's Rhythm?.

Critical analysis

The problem is not purely legal. It is economic and social. For many taxi drivers the license is not only an operating permit but an asset into which they have invested years. A massive increase in the number of licenses would push down the market price of these rights. At the same time, the mobility of the population and the tourism industry is at stake: more providers could lead to shorter waiting times and lower prices, which would be attractive to users.

The bottleneck is in regulatory balance: who decides the number of vehicles on the road, the quality of the service and the social protection of drivers? If the decision is made only on legal grounds, the reality on the streets is neglected: increased traffic, clogged airport access roads, conflicts at taxi ranks such as Avinguda de Gabriel Roca or Passeig Marítim.

What is missing from the public debate

The debate is often reduced to two camps — license holders versus new providers. Three perspectives are missing: first, a robust analysis of actual demand for ride services throughout the year; second, a consideration of working conditions for drivers; and third, a look at urban planning consequences (parking management, emissions, safety at taxi ranks). These aspects are frequently not linked together.

Everyday scene from Mallorca

On a January day, when a Tramuntana breeze blows down Carrer de Sant Miquel, you see drivers polishing their taxis, talking with colleagues and debating at the petrol station. An older driver recounts how he bought his license twenty years ago to secure a roof over his family's head. A younger colleague adds that flexible platforms have increased her income but also brought uncertainty. Such encounters show: behind the numbers are people with worries and plans.

Concrete solutions

The legal dispute must be accompanied by practical steps, otherwise escalation looms. Proposals that are realistically implementable on Mallorca:

1) Temporary quotas and monitoring: Instead of immediately releasing all permits, transitional quotas could be introduced and the effects empirically measured over six to twelve months. This would determine whether additional providers actually improve service quality or merely depress prices for existing license holders.

2) Compensation and retraining funds: In case of drastic value losses, state-supported compensation mechanisms could be created to help affected drivers transition to other mobility services or obtain new qualifications.

3) Quality and social standards for all providers: Uniform rules on vehicle maintenance, insurance, working hours and price transparency would reduce competitive distortions and ease pressure on long-established drivers.

4) Linking permits to traffic planning: Permits should be tied to conditions that do not additionally burden urban traffic — for example, proof of low-emission vehicle fleets or allocation to specific zones and time windows, with precedents such as Shared taxi service: 13 Mallorcan municipalities take the step across borders.

Concise conclusion

The dispute over 3,600 licenses is more than a legal skirmish. It is a stress test for Mallorca’s ability to reconcile economic interests, livelihood security for drivers and urban quality of life. Those who rely solely on court rulings or market mechanisms overlook the social costs. If the Balearic government and the stakeholders now work pragmatically together — with transitional rules, monitoring and fair compensation measures — a compromise can be found that is more than a temporary fix before the next protest.