New concept of taxi market regulation presented

BRDO together with ACC, EBA, SUP and taxi market participants presented a new concept of the taxi market regulation “Ride in a new way”. The market reform objectives are to ensure the transportation safety and quality, payment of taxes and healthy competition in the market.

“We are confident that it can be achieved through the introduction of a declarative principle of conducting business activities instead of a license for “internal transport of passengers by taxi” and the introduction of fee-based, time-limited (no more than 1 year) authorization documents to transport passengers by taxi,” the Transport and Infrastructure Sector Head Vladyslav Prytomanov said, presenting the concept.

These and other innovations were laid down in the draft law developed jointly with market participants. It was developed based on the Green Paper “Taxi Services Market” presented by the BRDO Office at the end of last year.

At the presentation, a Memorandum of Understanding and Cooperation in the development of the market for passenger transportation by taxi and cars between the BRDO Office, the Association of Responsible Carriers and market players was also signed. The main task of the document is to unite the efforts of market participants to introduce a new model of the taxi market regulation on the basis of deregulation. In particular, it provides for:

  • cancelling licenses for internal transportation of passengers by taxi and cars at business entities’ request and replacing them with a notice on the commencement of such activities;
  • creating the possibility of providing services for internal passenger transportation by cars at request of automobile individual carriers, subject to paying a fixed fee for obtaining a permit to carry out such transportation;
  • introducing a convenient and public mechanism for drivers allowing to register a permit for transportation services quickly and conveniently;
  • providing exemption from the payment of other taxes or fees if an automobile individual carrier paid for obtaining a permit;
  • ensuring life and health insurance of passengers as a mandatory condition of doing business in the taxi market;
  • establishing a sufficient transition period to adapt to the requirements of the new legislation and imposing sanctions for its violation.