To make the taxi market legal and formal, improve the quality of services, provide an adequate level of passenger safety.
Amending the legislation, including the introduction of a patent for drivers instead of licensing, compulsory accident insurance, etc.
Law on the taxi market legalization.
The BRDO has been working on the taxi market reform in Ukraine since 2018. According to our research, at that time, 96% of the taxi market operated informally. According to the Ukrainian Taxi Association, more than 99% of the taxi market in Ukraine is informal.
In Ukraine, about 2 million passengers take advantage of taxi services every day. Accidents often occur, but these taxi rides are usually uninsured.
The draft law developed by the Ministry of Infrastructure together with BRDO experts and the Association of Responsible Carriers provide for simple and clear rules to
enter the market: cancellation of licenses, but the introduction of patents that can be purchased for a year or a month.
The patent value per year will not exceed the legal minimum wage rate, and therefore it should not be a factor in increasing the cost of services, as it will cost about UAH 500 per month.
Drivers will have a choice: to work as private entrepreneurs or transport passengers on the basis of a patent after entering it in the Register of Carriers by Taxi or On-demand Cars. The information from registers will be open and public with free of charge access. The information will be entered in the registers within 5 days after the application and package of documents.
Currently, there is no guarantee of passenger safety due to the lack of a driver liability mechanism. The draft law provides effective tools for monitoring compliance with market rules.
Carriage of passengers will be subject to compulsory personal insurance against traffic accidents. Road carriers or information service providers will act as an insuring party.
Why is this essential for Ukraine?
The annual taxi market value is more than UAH 40 billion. However, taxes are currently paid by no more than 1% of employees who have a license to carry out transportation. As a result of the reform, the state budget should receive at least UAH 800 million annually.
Outdated legislation that does not take into account the growing role of IT, should be amended, in particular through mobile applications currently used to order and pay for services.