New taxi fare caps spark driver protests over shrinking earnings

New taxi fare caps spark driver protests over shrinking earnings

A yellow taxi drives down a busy city street lined with buildings, while pedestrians with umbrellas walk on the sidewalk beneath cloudy skies and overhead electric wires.

New taxi fare caps spark driver protests over shrinking earnings

A new agreement aims to limit taxi fare surges during busy periods and poor weather. The Ministry of Antimonopoly Regulation and Trade (MART) has signed the deal with major dispatchers, including Yandex Go, A1 Taxi, and Taxi 152. But drivers warn the changes could push many out of the profession entirely. The agreement covers companies controlling over 90% of the taxi market. Its goal is to stop prices from spiking when demand rises or conditions worsen. Dispatchers will now face stricter rules on dynamic pricing during peak times.

One driver explained how earnings already struggle under the current system. To make $800 a month, he must work 12-hour shifts for at least 15 days—around 180 hours total. After fuel, fleet fees, and dispatcher cuts, his net pay drops to roughly 12 rubles per hour (about $3.60). The maths becomes even tighter in bad weather or heavy traffic. Earnings can halve, despite the job growing harder and riskier. To hit 3 rubles every 15 minutes, he needs four short trips each hour—a difficult target when roads are jammed. The driver also highlighted the gap between passenger fares and his take-home pay. Most of the money goes to dispatchers, fleet operators, and running costs. If surge pricing is capped, he predicts fewer drivers will work during peak times. Some may quit entirely or return to unregistered, cash-in-hand jobs. Without higher fares to offset tough conditions, the driver expects two outcomes. Cars will deteriorate faster as maintenance gets delayed, or companies will raise base prices. Passengers, facing fewer available taxis, may then turn to public transport instead.

The agreement is now in force, with MART monitoring compliance among the largest dispatchers. Drivers, however, argue that lower surge pricing could shrink the available fleet during high-demand periods. The long-term effect may be fewer registered taxis on the road and more pressure on alternative transport options.

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