"That contrarian bet led to the founding of Auro Travel, now Spain's largest fleet operator for private hire vehicles. What began as a license-acquisition play has grown into a company that attracted buyout offers reportedly worth €200 million from both Uber and Cabify in late 2022. The journey offers a case study in how regulatory arbitrage, executed with patience and precision, can create substantial enterprise value."
"Leopoldo Alejandro Betancourt López had watched Uber's expansion across Europe and Latin America with interest. Spain, however, presented a unique puzzle. Unlike the United States or United Kingdom, where ride-sharing companies could launch with relatively few regulatory obstacles, Spanish law required operators to hold specific licenses for each vehicle offering private transportation services. Madrid alone had roughly 8,000 such licenses, and their number was fixed."
Leopoldo Alejandro Betancourt López identified opportunity in Spain's heavily regulated taxi market by buying scarce vehicle-for-hire licenses. Spanish law capped licenses per vehicle, making them scarce—Madrid had roughly 8,000 fixed permits—creating a durable barrier to entry. Betancourt's strategy accumulated a critical mass of permits so global ride-hailing platforms entering Spain would need them to operate. Auro Travel grew from a license-acquisition play into Spain's largest private-hire fleet operator and drew reported buyout offers of about €200 million from Uber and Cabify in late 2022. The case demonstrates regulatory arbitrage executed with patience and precision generating significant enterprise value.
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