The decision on taxis has an impact on the car market

The decision on taxis has an impact on the car market

Taxi fares in Azerbaijan have surged following recent government measures, with further increases expected. Reports suggest that from June 1, the minimum fare for taxis in Azerbaijan will rise to 4 AZN 50 qepiks, a significant increase from the current 2 AZN 50 qepiks. This potential hike of over 50 percent is attributed to new regulations and a subsequent reduction in the number of taxis operating in the country.

The recent fare increase has already prompted complaints from passengers. Many link the rise to the government's decisions aimed at regulating the taxi industry. On March 28, the Cabinet of Ministers approved stringent requirements for taxi vehicles, including adherence to the Euro-5 environmental standard and a maximum vehicle age of eight years. Additionally, changes to the law on road transport, effective October 1 last year, introduced a 3,000 Manat fee for taxi operator permits and mandated the installation of taximeters and video recorders.

These regulations have led to a noticeable decline in the number of taxis. While official statistics are not yet available, taxi drivers estimate a reduction of approximately 2,000 vehicles. Earlier this year, Deputy Minister of Digital Development and Transport Rahman Hummatov indicated that Baku, with its current population, needs around 20,000 taxis, despite the city having 60,000 taxis at the time.

Elnur Mammadov, a taxi driver in Baku, noted that while demand for taxis remains high, the reduced supply has increased the number of orders. However, he expressed concerns about passenger dissatisfaction with the fare increase. "If the minimum fare is 4.50, many passengers say they will stop using taxis," Mammadov said. "This will also affect our earnings because if no one takes a taxi, I can't bring home any income."

The Azerbaijan Ground Transport Agency (AYNA) informed Turan that over 800 individuals have applied for and received permission for taxi activities. Regarding the fare increase to 4 AZN 50 qepiks, AYNA emphasized that taxi fare prices are determined through a competitive market based on supply and demand. "The current taxi operators set the prices in a competitive environment," the agency stated.

Transport expert Arshad Huseynov criticized the artificial manipulation of prices without considering market demand. "If the measures in the taxi sector are successfully implemented and public transport improves, a gradual increase in taxi fares is expected. But a sudden 60-70 percent hike is artificial," Huseynov remarked. He warned that taxi operators risk losing customers if they proceed with such steep fare increases. "People will look for alternatives and avoid using taxis if possible, which doesn't bode well for taxi operators or drivers."

Huseynov also pointed out the poor state of public transport in Baku, noting the lack of significant improvements or expected changes. This situation could force people who rely on taxis due to inadequate public transport into difficult circumstances, potentially spurring illegal taxi activities.

Attempts to reach taxi companies for comment were unsuccessful.


Solving the taxi problem in Baku: a roadmap to sustainable development and economic stability

Leave a review


Follow us on social networks

News Line