Crisis in the bus industry! Company removed from sales app revolts

As the influence of the digital bus ticket sales platform Obilet grows in the transport sector, allegations of "monopolization" have flared up once again. The platform, which was previously investigated by the Competition Authority and received warnings due to certain decisions, is now on the agenda due to disputes with major transport companies.

It is claimed that the digital system, through which hundreds of bus companies across Turkey sell tickets, is disrupting the balance within the sector.

REMOVED FROM THE SYSTEM

The latest development that sparked the controversy was the removal of Metro Turizm from the Obilet platform. The suspension of ticket sales for Metro Turizm, one of Turkey's largest passenger transport companies, through the system has caused a major stir in the industry.

Speaking on the matter, Metro Turizm Chairman of the Board, Attorney Umut Kahraman, stated:

"Metro Turizm was founded in 1992, a company with approximately 33 years of history. Over the years, it has dominated the sector and has been one of the companies carrying the most passengers by a wide margin. As you are aware, online sales platforms are platforms where tickets are sold online, and all companies offer their tickets for sale here. This relevant platform receives a certain commission from the companies in exchange for the tickets. However, disputes can arise from time to time between the companies and the company that owns the platform. These disputes have increased recently. Because it tried to increase the commission fees it receives in exchange for the sale of tickets. In this sense, it is not just bus companies that earn their bread from this sector; we have agencies in bus terminals and city centers operating in all 81 provinces of Turkey. They employ personnel and are agencies that contribute significantly to employment. Of course, there can be injustices in the sharing of these earnings. Finally, while we were continuing mutual negotiations regarding these, the relevant platform threw us off the platform on Thursday, July 31, without relying on any objective criteria. This situation caused unfair and destructive competition, and we suffered serious economic damage. Because July and August are periods when the road transport sector reaches its peak, demand is very intense, and supply increases accordingly. During such a period, our passengers could not reach our Metro Turizm tickets on the relevant online sales platform. We immediately took this process to the Competition Authority and requested an injunction. We demanded that the practice of the platform, which causes this unfair and destructive competition, be terminated and that Metro Turizm be included back on the platform. We are expecting a result regarding this application at the beginning of the week. The process currently consists of this. Apart from this, of course, this will have a serious economic burden on us. In fact, the weight of this platform in the sector has reached such a level that, despite being a 33-year-old company, we could even reach the point of stopping our services or even closing down. In this sense, the economic consequences of this will of course be very heavy. At this point, we are expecting an urgent injunction from the Competition Authority and subsequently a decision on the merits of the case. Of course, we do not have a situation like a dispute. We have had such conflicts between us before. We resolved these through mutual negotiations, but this time, without even coming to the table, they pushed us completely off the platform without question, that is, in a way that is clearly contrary to competition law, commercial law, and also contrary to sportsmanship. Currently, our passengers prefer to buy tickets from our competitors because they cannot reach us. This has seriously affected our occupancy rates for our services. There have been drops of nearly 40-45 percent. According to rumors we have received from other companies in the sector, the relevant platform also wanted to increase their commissions. We know that complaints have been made to the federation, the umbrella organization of the sector, that the relevant platform threatens to remove other companies that do not increase their commissions from the platform. When we contacted the Competition Authority, we know that there were other complaints made about the relevant company before. In this sense, there is a commitment they made recently. We can say that they also violated that commitment to the Authority. As of now, the economic dimension of Metro Turizm being thrown off the platform without question has reached serious figures. It is known that this will cause damages that are difficult and impossible to compensate. At this point, we are looking for ways to return to the platform as soon as possible, while the injunction decision is being issued."

Birol Özcan, President of the Turkish Bus Operators Federation (TOFED), who reacted harshly to what happened, said:

"Let me say something while in great distress. Those who sell tickets online must keep commission rates fixed; when you take an 8 percent commission from one company and 10-12-13 percent from another, passenger costs increase. We do not only sell tickets to passengers through online sales. They pay rent, insurance, and salaries here. These online tickets unfortunately hurt us. They should not take commissions up to 12-13 percent to reduce the passenger cost of these. Also, according to our rumors, we hear that this online company has sold a large share to a European company and become a partner, turning it into a monopoly. This is very wrong for us, for Turkey. Where is it wrong? For example, they will now reduce the number of bus services. They will give seats accordingly, they will increase commission rates. A lot of difficulties. Things that will prevent bus terminal exits, and let me tell you something, there is no secret side to this. Even the restaurant on the road will start charging money. It is heading towards that situation. Come on, let's have a meeting with all company owners, let the companies explain their troubles together with a workshop or meetings. Now they have started in the bus terminals. Let's not let those who buy tickets from online tickets into the bus terminal. This is also wrong, but it needs to enter a competition board order. Now, can the same company take a 13 percent commission from one company and 8 percent from another? We need to think about this too. Secondly, there is also a money holding incident. They keep the ticket money they receive with the POS machine in banks for 15-20 days and make the payment after 15-20 days. These are very wrong things, we have said this many times. We had reported this to the competition board 3 years ago. We had filed a lawsuit, but we had withdrawn it, but now we have come to such a position that if this company is blocked, the place will come to other companies too. Because as a federation, we represent 360 companies. Since whatever harm comes to this first Metro company will come to other companies, we must support them all together. Unfortunately, for this to be prevented, the competition board and Ankara need to take action, it needs to be brought under control, it needs to be checked. Because there is no such environment, there is no such system. I mean, take 8 percent commission from one, 10 percent from another, 13 percent from another, and keep the price high, what is this? When they take 13, 8, 10 percent commission, bus companies and individual bus operators are already left with nothing when they leave the bus terminal due to passenger costs. To fix this, we must definitely meet, and the Competition Authority must also get involved in this issue. All companies must support each other. If this oppression is brought to company ABC, other companies must also support that company, stand behind it. I request it from all of them, I offer my respects."

News Source: İHA