Will taxi prices continue to rise?

Will taxi prices continue to rise?

Over a year passenger spendings on taxis has increased by about 12%. This is happening due to increased demand, the monopolisation of the market and the shortage of taxi drivers, the analysts explain.
The average bill for taxi services, according to the Platforma OFD company, which processes up to 50 million receipts daily, has grown by an average of 12% from January 2021 to January 2022, while the sales in monetary terms grew by 20%.
In December 2021, as compared to December 2020, due to the pre-New Year's rush, the average bill went up by 17%. The price of taxi rides in Moscow in December rose  by 57%. Government regulators have repeatedly taken notice of the taxi market. In particular, the Federal Antimonopoly Service (FAS) has stated that it is important to prevent monopolisation.
Representatives of the aggregators, however, say that the fares remain the same. Citymobil press-service explained to Rossiyskaya Gazeta newspaper that the cost of travel is formed by automatic algorithms which take into account traffic congestion, the predicted duration of the trip, the number of cars on the line and other factors. Yandex says that supply and demand are currently in balance, so the upward coefficient is triggered less often. Aggregators explain the introduction of such coefficients by the need to attract drivers during the shortage of cars.
The number of organisations and individual entrepreneurs providing taxi services decreased by 14% from 91.6 to 78.9 thousand during the last three years. This means that the passengers should be prepared for a periodic increase in the coefficients. In Moscow and the Moscow Region, on the other hand, the number of taxi companies has grown. But won't lower the fares.
"Prices are mostly influenced by aggregators and the level of market monopolisation. In Moscow, 80% of the market is now occupied by Yandex. If the monopoly will be kept, the prices will be gradually increasing anyway, as well as the commission", explains Stanislav Shvagerus, Head of the Competence Center of the International Eurasian Forum Taxi. Besides, the demand for taxis is constantly growing. At the same time, over the last year the prices of cars have gone up significantly, and this is not reflected in the rates, he adds. 

Photo:, Sergey Kuksin

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