In the second-to-last week of 2022, the State Duma gave final readings to a law guiding taxi operations. The measure, which becomes effective on September 1, 2023, spans 96 pages and introduces a broad set of rules for the industry.
The act bars people with criminal records and three unpaid traffic fines from working as taxi drivers. It requires drivers to enter a formal employment contract with a carrier, an individual entrepreneur, or to register as a self-employed person. It also mandates that taxi vehicles feature a distinct color scheme with a checkerboard pattern, with an orange roof lamp proposed and a card displaying carrier and driver details placed inside the cabin.
Other notable innovations include the creation of a state information service and taxi registers, the opening of regional service offices, a division of responsibilities between collectors and self-employed drivers, and additional measures aimed at tightening oversight.
Missing working drivers
A central goal of the bill is to introduce self-employed drivers in specialized conveyances for passenger and luggage transport under a formal legal framework. Taxi companies counter that several accompanying laws undermine this goal by making self-employment impractical.
Experts note that self-employed drivers must carry liability insurance at a taxi rate, pass pre-shift and post-shift medical checks, adhere to the color scheme mandated by the region, and prepare waybills, along with other requirements that feel like remnants from older fleets. This perspective comes from Pavel Stennikov, spokesperson for the Maxim service, in a discussion with socialbites.ca.
The cost of insurance for a delivery car is dramatically higher for private owners compared with standard OSAGO policies, and insurance providers remain reluctant to insure taxi vehicles, a problem that persists. The service highlights this as a core issue.
Drivers unfamiliar with local transport hubs, cultural sites, medical facilities, schools, sports centers, and authorities will be barred from working as taxi drivers. Stennikov argues that the new law concentrates on Moscow as a modern, prosperous hub and the country’s largest taxi market, rather than the broader national landscape that includes vast rural areas and the Far North with limited access to medical and inspection points.
The source asserts there will be no other carriers beyond self-employed individuals using personal vehicles. The Maxim service notes that in many Russian regions, over 90 percent of orders are handled by self-employed drivers, with 80 percent completing no more than three trips per day. The company warns that many self-employed drivers will struggle to meet the new requirements because the costs could surpass potential income, effectively excluding them from legal operation. Simultaneously, the law sets a framework that could prevent collectors from routing orders to drivers who are not permitted to operate taxis. Stennikov cautions that self-employed drivers may lose work and revert to soliciting passengers outside formal channels.
Taxi price implications
The need to employ drivers through state channels or to register them as self-employed worries many in the sector. Citywide associations emphasize that the new requirements will raise operating costs for taxi companies. A representative from People and People, a coalition including Citymobil and Gruzovichkof, notes that the bill’s demands will translate into higher service costs. While the new rules aim to improve safety and reliability, the exact verification mechanisms remain unclear and may require technical upgrades.
Municipal price controls on taxi services threaten price competition and could push fares higher for both drivers and passengers, according to People and People analysts. The law requires local offices to open if regional demand exceeds a threshold of four thousand taxi cars handling orders daily. When asked about regional offices, Yandex Taxi stated that establishing local branches seems unnecessary and would incur costs yet to be measured. Taxovichkof, by contrast, operates through regional franchises rather than expanding branch networks.
Overall, sector groups argue that the regulation is not fully developed and that ongoing dialogue between authorities and industry is essential to creating effective changes that support safe, accessible taxi services.
Unfair consumer concerns
There are claims about the Tax Regulation and how it affects drivers. Anton Maksimov, founder of the Ombudsman Taxi channel, contends that lawmakers did not adequately consider market participants during the public hearings for the bill’s initial version. He notes that commentary from experts and the public chamber was overlooked and points out that the law excludes collectors from the protections of consumer rights law.
Under the new rules, collectors bear subsidiary liability for passenger harm not fully covered by compensation schemes, shifting some costs to drivers. Previously, liability limited to joint and several responsibility. Maksimov cautions that pursuing compensation could be lengthy and yield only modest sums under OSAGO, potentially disadvantaging victims seeking redress.
With rising costs for self-employed drivers and taxi operators due to higher OSAGO and spare parts prices, observers warn of a migration away from professional operators toward less formal drivers, including many immigrants and part-time workers earning around typical incomes. Petr Shkumatov, a coordinator for the Blue Buckets movement, argues that shifting responsibility from collectors to drivers could leave passengers uncovered for accident-related losses and put additional financial pressure on drivers.
Even basic elements like pre-trip and post-trip medical examinations were described as burdensome, with some suggesting remote telemedicine as a solution. Critics warn that such measures, if applied to individuals as well, would create a major obstacle to market growth, raising the cost burden on carriers and passengers alike.