Deputy Speaker of the State Duma, Boris Chernyshov, has sounded the alarm on the soaring taxi prices in the Russian taxi industry. This urgent call to action demands a reevaluation of the new “taxi law” and its impact on transportation costs.
Skyrocketing Costs of Travel
With August came unsettling news of taxi prices as Rosstat reported a staggering 10-year record increase in the cost of taxi travel, reaching a daunting 32.5 rubles per kilometer. This sharp rise in taxi prices can be attributed to several factors, including surging car and fuel prices, as well as the necessity to adjust driver salaries. However, the spotlight has shifted towards the “taxi law” as a significant contributor to this price surge.
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Impact of “Taxi Law”
The introduction of the “taxi law” brought with it a wave of changes that handed regional authorities the power to set specific requirements for taxi vehicles, such as their design, color, and environmental class. As a result, numerous drivers found themselves unable to meet these new demands. In a bid to comply, drivers are left with two unfavorable choices: either bear additional expenses or resort to the underground black market for passenger transportation.
Key Provisions of Record Taxi Prices
While the majority of the “taxi law” provisions went into effect on September 1, there are key aspects that demand attention. One such requirement obliges taxi ordering services to automatically provide the Federal Security Service (FSB) access to all data related to taxi prices transportation, taxi locations, and driver information.
Additionally, the law mandates that taxi drivers purchase a mandatory motor liability insurance policy at rates significantly higher than standard premiums. Experts from the Center for Strategic Research (CSR) predict that due to the unaffordable insurance costs, a substantial portion of drivers may exit the Russian taxi market.
Source: Lenta