Experts expect a 22% rise in the cost of a taxi ride

Experts expect a 22% rise in the cost of a taxi ride

Experts representing the Gaidar Institute for Economic Policy said that with the obligatory admission of drivers to the staff of taxi companies or aggregators, the cost of the trip will increase by 22-23%. Employers in the Russian Federation and abroad are opposed, since this situation is unprofitable for them.

Experts expect a 22% rise in the cost of a taxi ride

Image via:
Work in a taxi in self-employment mode is currently located in a gray zone from a legal point of view, but taxi drivers are not fully protected, lawyers say. With the introduction of the initiative to conclude labor contracts with drivers, the demand for the service will fall by 25%, and the costs of employers will increase by about 30%, experts said. At the moment, taxi aggregators in the Russian Federation are not employed in the state. It is quite rare to find work under an employment contract.

Often the driver is an individual entrepreneur who concludes an agency agreement with the taxi company. There is also another option: aggregators cooperate with self-employed who rent a car from an employer. At the end of the summer period, there are approximately 1 million self-employed in the Russian Federation, approximately 165,000 of them are taxi drivers. Experts from the Moscow Department of Transport report that in the capital in the second quarter of this year, an average of 430 rubles were paid for a taxi ride. This is 7% less than in 2019.

According to insiders who are familiar with the discussion of the draft law on taxi, the idea was supported by Yevgeny Moskvichev, who is the head of the State Duma's committee on transport and construction. The draft version, adopted in the first reading, states that only drivers who have labor or civil law relations with the aggregator should receive data on orders from taxi companies.

They also think about the employment of drivers abroad. So, on August 10, a court in California ruled that Uber and Lyft services are required to conclude contracts with drivers in 10 days, making them employees. Representatives of Uber said that they will not be able to quickly change the model, as a result, they will have to reduce the staff. Later, the California Court of Appeals intends to consider this decision, but for now taxi companies should operate as before. According to researchers, the most financially favorable scenario for market development is the work of self-employed drivers.

Leave a Reply

Your email address will not be published. Required fields are marked *