Will taxis be available in October?

Starting October 1, significant amendments to the legislation governing taxi operations in Azerbaijan are set to come into effect, sparking concerns among both drivers and passengers. These changes have already prompted discussions on social media platforms, with many fearing a potential shortage of taxis and rising fares.

Under the revised laws enacted in July of this year, which include amendments to "state duty" and "road transport" regulations, taxi operators will be required to pay a substantial fee of 3,000 Azerbaijani Manats for a permit to conduct their business. In addition to this permit fee, operators will also need to purchase issue cards at a cost of 125 Manats and 25 Manats for passenger transportation. Furthermore, taxis must be equipped with digital tachograph and taximeter devices to ensure compliance with the new regulations.

The Ministry of Digital Development and Transport has reported that there are approximately 40,000 taxis operating in Azerbaijan, with Baku accounting for 28,000 of them. An astounding 90 percent of these taxis operate through various online platforms.

As these regulations begin to take hold, concerns have arisen among taxi drivers and industry experts. One anonymous taxi driver expressed apprehension about the financial burden of installing taximeters and tachographs, remarking, "this equipment is expensive. I don't know how it will be? If they want the good of drivers and passengers, let them reduce the interest that companies receive from drivers. The company takes 20 percent from us. In Armenia, the same company receives 6 percent from drivers, in Georgia-7 percent."

As of now, there has been no official response to these concerns from the companies operating in this sector. However, the Ground Transport Agency (AYNA) informed Turan that the regulatory steps taken aim to ensure the provision of quality and safe services to citizens while combating informal employment within the industry.

In an interview with Radio Azadlig, economist Rashad Hasanov  weighed in on the situation, acknowledging the challenges presented by the abrupt implementation of strict rules. He explained, "People have been massively offered taxi services in Azerbaijan, and there is no mechanism to ensure strict control over this. This can also lead to the formation of illegal relations. That is, some governing body can use this as an instrument to open the way for illegal transactions. In this case, more negative consequences may appear than the expected positive result."

Hasanov further noted that a balanced approach may be required to address these issues, suggesting, "it is possible that an approach to the partial implementation of one-time payments will be introduced."

Regarding concerns about potential price increases, the economist provided some reassurance. "In the current conditions, there are many factors that determine the price," he said. "The first symptoms of rising prices appear. But these are short-term effects. And the minimum limits set are interference in the market."

As October 1 approaches, the Azerbaijani taxi industry remains on edge, with industry stakeholders and passengers alike watching closely to see how these regulatory changes will ultimately impact their daily lives and the broader economy.