What is a VTC, what differentiates it from a taxi and how do licenses work?

The conflict between the taxis and the VTCs or the new regulation of the latter in cities, has put VTC licenses (Driver's Vehicles with Vehicles) at the center of attention. These are authorizations to carry out the activity of leasing vehicles with drivers, as the name implies. Although now they are popular for being those used by chauffeurs of well-known companies, but before they were used by limousine drivers, for example. We explain how they work.

WHAT IS THE DIFFERENCE BETWEEN TAXI AND VTC Although both taxis and VTCs provide chauffeured vehicle services, there are some differences between the two. The first of these is the hiring method. While VTCs use a prepaid service in which prices are calculated before hiring, taxis generally operate at a rate that is not paid until the end of the service. On the other hand, you can hire a taxi if you stop on the street, going to a stop or calling by phone. But VTCs can only offer service to those who hire it through the app. Another main difference is the prices. In the VTC the price is fixed according to the demand so that the same route can have a variable cost depending on the time and day. In taxis the prices are much more stable. Finally, mention that taxis have passenger insurance, while VTCs lack them in many cases and also distinguishes both services from licenses. While taxis cannot acquire more than two licenses per person, those of VTC have no limit.