The Public Council for Taxi Development has sent a formal request to the Russian government, urging finalization of the localization bill for self-employed drivers and the introduction of state subsidies to support taxi companies. The appeal was reported by Kommersant.
The council argues that the current bill version threatens small entrepreneurs and fleets, especially those who recently entered the legal taxi sector to offset the exodus of drivers. They emphasize that these operators, often with modest fleets, could be squeezed by localization requirements that favor larger, established operators.
According to the council, small transport providers will struggle to replace their fleets with domestically produced vehicles. The reasons cited include unfavorable bank loan terms, ongoing shortages, and high vehicle prices that complicate any rapid transition to locally manufactured cars.
Additionally, the Public Council for Taxi Development proposes excluding cars older than three years from localization mandates because of market constraints and price pressures. They also call for discarding the points-based system currently tied to localization goals.
To help taxi drivers absorb rising costs, industry representatives are advocating for price adjustments that reflect escalated operating expenses. An analytical center linked to the Russian government notes that the average taxi fare has climbed by about 23–29 percent since 2021, a shift that echoes broader inflation and procurement costs.
Experts highlight that drivers have faced a cumulative cost increase of roughly 1.5 times over the past two years. Beyond the steeper sticker prices of new cars, maintenance, fuel, rental expenses, and mandatory automobile insurance have all contributed to the higher cost of doing business in the taxi sector.
Aggregated assessments from the government-affiliated analytical center also suggest that the taxi market experienced a shortfall of approximately 72,000 drivers in 2023, while the total number of valid taxi operation permits declined by about 13.6 percent. There is concern that a lack of new freelance drivers, driven by localization restrictions, could trigger another round of price increases for riders.
It should be noted that the new bill, which has already passed the first reading in the State Duma, provides regions with leeway to decide the acceptable level of localization for their taxi fleets. Meanwhile, the government could set a universal minimum localization threshold for the national taxi industry.
Market representatives are calling on the government to complete the draft text and to form a working group that includes their input to discuss proposed changes openly. Collaboration is seen as crucial to balancing policy aims with practical realities faced by drivers and small operators alike.
By 2023, the share of taxi cars older than five years in Russia rose to 17 percent, a trend attributed to a persistent shortage of new vehicles, rising prices, and growing costs related to credit and leasing. Stakeholders view this aging fleet as both a symptom and a pressure point for the broader localization debate, underscoring the need for a measured, market-sensitive approach to policy design.