Sphere of Taxi Services Monopolized

Baku / 21.04.17 / Turan: The proposal for a uniform tariff for taxi services is an attempt to create a monopoly in this area, the economist Natig Jafarli said, commenting on the initiative of Vusal Kerimli, Director General of the Transport Agency of Baku, to introduce a single tariff in the sphere of taxi services.

Earlier, in an interview with APA, Kerimli said that an appropriate appeal had already been made to the Cabinet of Ministers and the Ministry of Economy.

Jafarli in an interview with Turan said the taxi industry is one of the few ones, where prices have fallen over the past two years and this, in spite of devaluation and inflation. He noted that prices fell due to competition and a free market in this area.

“The philosophy of the authorities boils down to what is best only in the sphere that they control. But in fact, the opposite is true. Spheres that the government does not control develop according to the principles of a market economy,” he said.

At the same time Jafarli suggested that all this is done in order to return the profitability of the so-called London taxi.

“They were acquired through the support of the state budget. Now, these taxis have lost profitability, as a large number of companies have appeared, offering taxi services through the Internet and short numbers. For London taxi plans are not reduced, and therefore, trying to establish a uniform tariff, they want to return profitability to them,” he said.

The head of the NGO for the protection of consumer rights, Eyyub Huseynov, in turn, considers the attempt to introduce a single tariff for taxi services as violating consumer rights.

“In the service sector, the government should create conditions for competition, rather than introduce tariffs. There is an attempt to create a monopoly in the sphere of taxi services. Adam Smith also said that monopoly is an ax over the consumer's head. In normal market economy conditions, the client must choose between the companies,” he said.

The press service of the Ministry of Economy told Turan that they had not received a proposal for a common taxi tariff.

“So far, there is no proposal, and therefore we cannot consider it from the point of view of antimonopoly laws,” the press service said. - 71D--