Dispute over taxi fares

Ziarul Financiar 07.01.2010
Taxi companies Meridian and Leone (1.65 RON/km), and Taxi 2000 (1.69 RON/km) are seeking to cut fares in order to attract customers after the number of orders fell by more than 20% in the last two months. "We are seeking to cut fares because the market demands it. There were order peaks during the time when it snowed, but on average the number of customers has dropped. We are seeking to cut the fees, but it all depends on the City Hall," said Marian Mares, manager of Taxi Meridian. The approval of the City Hall has been expected since November and it not being granted is motivated, according to statements from taxi drivers, by the fact that a 1.2-1.3 RON/km fare is not sustainable. Representatives of the Bucharest City Hall have not issued an opinion on the taxi companies' requests. At present fares range from 1.19 to 3.5 RON/km. Taxi companies admit, however, that a sustainable fare, considering that fuel price has risen 40% in the last 12 months, and mandatory car insurance rose by up to 50%, is 1.8 RON/km. "It is very good that the fare reduction has not been approved. More than 80% of taxi companies now have problems, and the right price would be 2-2.5 RON/km," said Florin Mihalcea, vice-president of the Association of Taxi Operators.