Portugal’s ride-hailing sector continues to expand, however, the latest official figures from the Institute for Mobility and Transport (IMT), Portugal’s driving authority, reveal an uncomfortable reality for the business model. Growth in the number of drivers is being sustained almost entirely by foreign workers, whilst Portuguese nationals continue to leave the profession.
In the wake of these figures, a warning has been issued by the Portuguese Association of Transport and Chauffeur Vehicle Hire Operators (APTAD), which cites the May 2026 IMT report as evidence that the sector is far removed from the narrative of prosperity frequently promoted by ride-hailing platforms, who seek to attract a constant flow of drivers.
According to data released by the IMT, the total number of active drivers rose from 40,596 to 40,858 between April and May. But, behind the net increase of 262 drivers lies a more significant trend: the number of Portuguese drivers fell from 20,407 to 20,226, whilst foreign drivers increased by a more significant portion, from 20,189 to 20,632.
APTAD says the figures are unequivocal. "All net growth was driven exclusively by foreign drivers, nationals of India, Bangladesh, Pakistan and other countries, a telling indication of the conditions the sector offers to Portuguese citizens," the association said.
The organisation also argues that the figures undermine recent claims by the National Association of TVDE Drivers (ANM-TVDE), which alleged that 1,000 drivers had left the city of Lisbon within a single week.
APTAD responded sharply, accusing the association of spreading claims unsupported by any statistical evidence. "This is a factually false statement with no basis in official data," the association said in a statement.
APTAD notes that no official weekly data or municipality-level statistics exist that could substantiate such a claim. On the contrary, the figures published above show an increase in both the number of drivers and vehicles operating during May.
However, it is the sector's structural challenges that have prompted the association's strongest criticism. With 37,821 active vehicles, APTAD estimates there is sufficient capacity to carry out more than 900,000 journeys per day. Yet the platforms are generating only around 500,000 daily trips, equating to a fleet utilisation rate of approximately 55%. The sheer volume of drivers outweighs the public demand.
According to the association, this oversupply is fuelling a price war that is eroding drivers' earnings and pushing thousands of workers into increasingly precarious conditions.
"It is this downward pressure that is causing the ongoing collapse of operating companies and the digital exploitation of drivers," APTAD said.
The organisation argues that economic risk is transferred from the platforms to operators and from operators to drivers, who are ultimately forced to work extended hours to earn incomes which, after operating costs are deducted, fall below the national minimum wage. Local drivers are driven away from the profession by the turbulent work-life balance and slim profit margins, whilst workers from abroad fill the void, going so far as to bloat the market.
APTAD also criticised a proposal by ANM-TVDE seeking to place platform-based transport services on the same footing as the public service provided by the taxi sector. The initiative was described as "factually incorrect, politically irresponsible and legally incoherent", with the association noting that both the IMT and the Mobility and Transport Authority have previously maintained that TVDE services should retain their status as a competitive private-sector activity.
With Parliament currently reviewing legislation governing the sector, APTAD is calling for measures that would place greater responsibility on the platforms themselves. These include mandatory disclosure of journey volumes, fleet utilisation rates, and stronger mechanisms to monitor drivers' actual working hours.
Source: JN
Photo credit: Reinaldo Rodrigues / Global Imagens
