Finnish taxi entrepreneurs sent an urgent message to parliament members last Thursday. They warned their livelihoods are collapsing under ride-hailing platform pricing policies.
Drivers say Uber and Bolt set prices below operational costs. This follows Finland's 2018 taxi deregulation that removed fare controls.
Entrepreneurs describe the situation as unsustainable. They claim current pricing significantly undercuts actual expenses.
This development threatens driver livelihoods and distorts competition. It makes the industry less attractive to skilled professionals.
Low fares leave entrepreneurs without maintenance funds. More unsafe vehicles now operate on roads, increasing accident risks.
Drivers cannot afford proper vehicle servicing or timely tire changes. The taxi fleet ages and deteriorates.
Income unpredictability prevents long-term business planning. App prices fluctuate wildly and can drop unexpectedly.
Some drivers might turn to tax fraud or other illegal means to survive.
One petition signer stated bluntly that entrepreneurs are in serious trouble. They urged parliament to regulate platform companies and prevent price dumping.
Some taxi owners cut costs by skipping driver occupational healthcare. Low earnings deter skilled drivers who understand customer service requirements.
Drivers without knowledge of Finnish traffic culture or winter conditions now operate taxis. Entrepreneurs propose mandatory training for foreign-licensed drivers before granting taxi permits.
Suggested training includes slippery road driving practice. This would improve safety and professional standards.
Many drivers lack sufficient Finnish or English skills. This causes navigation errors, payment confusion, and customer safety concerns.
Entrepreneurs posed five critical questions to parliament members:
Will new taxi legislation ban below-cost pricing or set minimum fares?
How will vehicle safety maintenance be ensured?
Are language proficiency requirements for taxi drivers under consideration?
Is market concentration by few international app companies acceptable?
How will consumer rights to transparent pricing be protected?
Current price levels make hiring employees nearly impossible. A normal 40-hour workweek doesn't generate living wages.
Income levels don't support hiring drivers. Many entrepreneurs avoid permanent or part-time staff due to high wage costs relative to service income.
Consumer protection has weakened since Uber and Bolt removed fare breakdowns from their apps. Customers only see total prices without cost components.
Upcoming taxi law reforms include mandatory taxi meters and colored license plates. Entrepreneurs call these steps in the right direction but insufficient.
Taxi meters alone won't solve gray economy issues or deep-rooted industry problems.
The industry will likely follow Uber and Bolt's app-based direction. Entrepreneurs praise Uber's high-quality app specifically.
Problematic pricing strategies push rates toward absolute minimums to gain market share. This could constitute predatory pricing.
The situation presents a clear case where deregulation intended to increase competition has instead created unsustainable market conditions. Platform companies' pricing power appears to be undermining the very industry they operate in.