In Kyiv, during air raid alerts, there is a sharp rise in taxi fares. This situation raises concerns among the capital’s residents, as prices sometimes increase several times over. The main reason for the fare spikes is the sudden surge in demand for taxis against the backdrop of a limited number of available transport options due to the suspension of ground metro services during alerts.
This is reported by Finway
Experts’ Opinions on Fare Regulation
Economist Oleg Pendzin emphasizes that it is impossible to regulate taxi pricing at the state level. According to him, taxis are not considered socially significant services, so the mechanism of state tariff control does not apply here. He points out that public transport in Kyiv continues to operate during alerts without raising fare prices, so using taxis remains a prerogative for those who choose this mode of transport as a luxury.
“Public transport continues to run during alerts and does not raise prices. The state ensures transportation via regular public transport, which operates during alerts. Taxis are a luxury. Use alternative transport,” said the economist.
Pendzin also notes that attempts to legislatively limit fares are ineffective, as they contradict the principle of voluntary service provision in the private sector. Moreover, such actions could lead to lawsuits from market participants, making the prospect of state regulation of the taxi market, in his opinion, unpromising.
How Fares are Formed and the Impact of Alerts on the Transport System
Engineer and transport expert Dmytro Bespalov explains that modern taxi services, such as Bolt, Uber, or Uklon, are ridesharing platforms and do not have fixed fares. The cost of rides is automatically determined according to current demand and supply. The fare calculation formula is a commercial secret and takes into account a number of variables: the number of available cars, the number of people wanting to use the service, travel time, weather conditions, events in the city, the condition of the vehicles, and other factors. During air raid alerts, demand increases, traffic jams occur, which further affects taxi service prices.
Bespalov emphasizes that during significant traffic jams, the efficiency of cars decreases: if under normal conditions one car can make several trips per hour, during traffic jams it can only make one. As a result, this leads to a decrease in supply and an increase in prices. The fundamental problem of Kyiv, the expert claims, is the overload of the city’s transport system. Any emergency situation, including an air raid alert, can lead to a transport collapse, a significant increase in travel time, and a rise in the number of traffic jams and accidents.
In his opinion, the problem can only be solved by developing public transport. It is particularly important to create alternatives to private transport and ensure the uninterrupted operation of public transport between different districts of the capital, even during alerts. The expert notes that if ground transport also stopped during alerts, taxi prices would be even higher due to the sharp increase in demand.
To stabilize fares, according to Bespalov, it is necessary to ensure stable demand, a sufficient number of cars, and reduce traffic jams, which is only possible with a developed public transport network. Citing Warsaw as an example, where trams run at 40-second intervals and can handle even peak demand, the expert emphasizes the importance of effective transport planning and the development of alternative modes of transport, including bicycle infrastructure.