Taxi Fare Increases and Fleet Strain Highlight Industry Pressures

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In late 2022, taxi fares rose sharply, with costs increasing by at least 30 percent in the fourth quarter. A regional transportation union official, Andrey Popkov, spoke with socialbites.ca about the drivers’ situation and the broader pressures facing the industry. He noted that the price jump coincided with the adoption of a federal law known as “Taxi” and a range of other sector challenges that were reshaping pricing dynamics across the market.

He explained that even before the new rules took effect on September 1, the average taxi rate had already climbed by no less than 30 percent from September through New Year’s. The rise was not solely tied to regulatory changes. The costs of key inputs had surged, including the price of spare parts and fuel, which collectively pushed operating expenses higher for many fleets, making the economics of running a taxi more fragile for some operators.

According to Popkov, wear and tear on taxi vehicles had also accelerated over the past year. Limited supply and higher dealer prices had forced fleets to contend with aging fleets and steeper capital requirements for replacements. The taxi fleet was described as being around half worn out, underscoring a critical point: vehicle affordability and availability were tightening, with many companies struggling to sustain service levels under the new price structure.

Drivers faced a difficult balance, often continuing to operate with aging cars to meet demand while keeping costs under control. The union representative remained hopeful that 2023 could bring relief on the vehicle supply front, enabling fleets to replenish and modernize their rosters as market conditions evolved. The overall takeaway was that the pricing environment reflected a mix of regulatory impact and broader cost pressures, with the potential to affect consumer use if prices continued to rise.

A separate incident was reported in Tatarstan involving a taxi ride that escalated into violence when a drunken passenger, armed with a knife, attacked the driver. This incident highlighted broader safety concerns that exist within urban ride-hailing and taxi services and underscored the need for ongoing attention to driver protection and security measures within the industry.

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