The State Duma proposes reforms to taxi fare algorithms amid rising prices

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The State Duma has put forward a plan to adjust the algorithms that set taxi fares, aiming to curb price spikes during the New Year holidays. This approach was reported by RIA News. The proposal originates from Dmitry Gusev, the first deputy chairman of the Fair Russia – For Truth faction.

Gusev’s position is that the fare-determining algorithms should be tuned so that taxi prices do not surge abruptly when a large number of bookings are rejected. He conveyed this view in a letter to the chief executive officer of Yandex, arguing that measures should be taken to prevent dramatic price jumps during periods of heavy demand (RIA News). The letter also mentions Alexander Anikin in connection with the discussion.

In addition, the deputy urged Vladimir Kolokoltsev, the Minister of Internal Affairs, to consider temporary preventive steps during taxi inspections. The goal, as outlined, is to reinforce oversight without causing disruption to everyday service while the market adapts (RIA News).

Gusev notes a notable rise in taxi prices across Moscow and several other regions in the past two months. He cites data indicating that the average trip cost in Moscow has climbed significantly, with increases of up to 40 percent overall and price surges by two to three times during peak hours (RIA News).

The Russian Union of Industrialists and Entrepreneurs (RSPP) reportedly does not back the bill granting the government the authority to determine the localization level for taxi vehicles. Critics warn that enforcing localization standards could slow the purchase of new cars due to shortages and push up vehicle costs. Such a move could also distort supply and demand, raising the risk that carriers might enter the informal market or exit the industry altogether (RIA News).

There is concern among industry observers that certain low-cost vehicle options, such as simplified models, may become impractical for taxi fleets under stricter localization requirements. This could hinder fleet modernization and limit the variety of vehicles available to passengers, affecting service accessibility and pricing in the long run (RIA News).

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