A group of Finnish taxi entrepreneurs have reached their breaking point with Uber and Bolt's pricing strategies. They sent a formal complaint to the Finnish Competition and Consumer Authority in September, requesting an investigation into whether these companies are using predatory pricing tactics.
The entrepreneurs expressed deep concerns about their livelihoods and the future of Finland's entire taxi industry. They argue that Uber and Bolt's ride prices frequently fall below actual operating costs, creating serious problems for the sector.
What is predatory pricing? It occurs when a dominant company accepts short-term losses to drive competitors out of the market. This practice constitutes an abuse of market dominance under competition law.
Drivers report that fare prices have dropped to unsustainable levels. Competition becomes distorted when some operators charge below-cost prices, they explained in their complaint.
The entrepreneurs specifically asked authorities to assess whether legislative measures are needed to prevent below-cost pricing. They also requested a comprehensive market investigation into the current state of Finland's taxi industry and competition distortions.
One major concern involves transparency. Both Uber and Bolt have removed detailed price breakdowns from their applications. Customers can no longer see how their fare calculates base fees, kilometers traveled, or time spent.
One entrepreneur who signed the complaint operates two vehicles in the Helsinki metropolitan area. He noticed his income unexpectedly dropped after price details disappeared from the apps. Only after completing rides did he realize he earned less than before, he explained.
The drivers worry that declining revenues will prevent fleet renewal and increase traffic risks. They also predict driver skills will deteriorate as the industry fails to attract qualified professionals.
Bankruptcies could increase, they warned, with more drivers facing credit problems. Tax revenues may decrease while gray market activity grows.
The Competition Authority responded that it would treat the complaint as background information rather than opening a formal case. Officials stated they would keep the concerns in mind while monitoring taxi markets.
The interviewed entrepreneur expressed deep disappointment with this response. Since Finland's taxi market deregulation, Uber and Bolt have dictated prices as they wish, he described. He now questions whether his business will remain viable by next summer.
Contrary to some beliefs, the Competition Authority confirmed it can intervene in prohibited practices under competition law, regardless of the 2018 taxi reform. Market dominance abuse and cartels remain illegal.
Determining predatory pricing requires case-specific assessment and extensive investigation, officials noted. They emphasized that price competition and low prices generally benefit consumers and represent normal market processes.
Bolt responded that it strictly follows all Finnish and EU competition laws. The company said it would address any matters directly with authorities. Uber had not commented by the end of last week.
The situation highlights ongoing tensions in Finland's liberalized taxi market. While consumers enjoy lower prices, traditional operators struggle to maintain sustainable businesses. This conflict between competition benefits and market sustainability continues unresolved.