'If the Plan comes to fruition, we will witness at least two or three times the increase in taxi prices'

In a bid to reform Azerbaijan's taxi industry, Deputy Minister of Digital Development and Transport, Rahman Hummatov, has unveiled plans to significantly reduce the number of taxis operating in Baku. This proposal, if executed, could have profound implications not only for the transportation sector but also for the livelihoods of thousands of drivers reliant on this mode of employment.

Hummatov's assertion that "20 thousand taxis should be enough for Baku" reflects a concerted effort to streamline the city's transportation landscape. With the number of taxis already declining from 67 thousand to 60 thousand since the summer, albeit with slight changes, the government is signaling a departure from the status quo. However, concerns linger over the fate of approximately 40 thousand drivers who may face unemployment as a result of these reforms.

Addressing these concerns, Hummatov emphasized that job displacement would not be as dire as anticipated. He cited opportunities in public transport, cargo transportation, and double-job roles as potential avenues for affected drivers to explore. Nevertheless, critics remain skeptical, warning of the economic fallout that could ensue from widespread unemployment within the taxi sector.

Legislative amendments introduced since last year underscore the government's commitment to revamping the taxi industry. These changes mandate stringent requirements for taxi drivers, including medical examinations, vehicle inspections, and adherence to a graduation card system. Such measures, proponents argue, are essential for enhancing service quality and aligning standards with those observed in developed countries.

The broader implications of these reforms extend beyond immediate employment concerns. The master plan for the development of Baku anticipates a gradual decline in taxi usage, projecting a decrease to 2.7 percent by 2040. Such projections necessitate a reevaluation of the city's transportation infrastructure and a concerted effort to bolster alternatives such as buses, metro stations, and trains.
MP Malahat Ibrahimgizi, in an interview with Turan, expressed support for the proposed changes in the taxi industry in Azerbaijan. Citing concerns about the current quality of transport services, Ibrahimgizi highlighted problems such as dirty vehicles and weak protocols for medical examination of drivers. In accordance with the standards observed in developed countries, the deputy stressed the importance of specialized training, assessment of physical and mental health and uniform requirements for taxi drivers.
Ibrahimgiza's approval of reducing the number of taxis is based on the belief that this will lead to an improvement in the quality of service. However, the MP is also mindful of potential pitfalls, arguing that such reforms should not pave the way for monopolistic practices or price increases. Ibrahimgiza's position highlights the delicate balance needed to achieve the dual goal of improving service standards while protecting the interests of consumers.
Advocating strict rules and a targeted reduction in the number of taxis, Ibrahimgizi adheres to the broader goal of modernizing Azerbaijan's transport sector.

Transport expert Arshad Huseynov underscores the symbiotic relationship between taxi services and public transportation. He contends that reducing the number of taxis without concurrent improvements in the availability and reliability of alternative modes of transport risks exacerbating existing challenges and fueling illicit taxi activities.

Economist Natig Jafarli raises critical questions regarding the rationale behind the government's push for taxi reduction. He argues that the existing regulatory framework, coupled with market competition, has effectively curtailed price increases within the taxi sector. Jafarli's concerns center on the potential for market distortion and monopolistic tendencies, which could arise from an abrupt reduction in taxi numbers:'If the Plan comes to fruition, we will witness at least two or three times the increase in taxi prices'.

Moreover, the prospect of absorbing tens of thousands of displaced taxi drivers into alternative sectors appears fraught with challenges. Economist highlights the impracticality of reassigning these individuals to roles within public transport, given disparities in skillsets and qualifications.

As Azerbaijan navigates the complexities of taxi industry reform, striking a delicate balance between regulatory oversight, market dynamics, and socio-economic considerations becomes imperative. The success of these reforms hinges on ensuring not only enhanced service quality but also safeguarding the livelihoods of those dependent on the taxi industry for their sustenance. Failure to address these concerns risks exacerbating unemployment woes and undermining the broader goals of transportation modernization.