Finnish Taxi Market Faces Renewed Calls for Price Regulation Amidst Deregulation Debate

Helsinki, Finland – The ongoing debate surrounding Finland's taxi market deregulation, enacted in 2018, has intensified with a prominent economist highlighting calls from some drivers to eliminate ride-sharing services like Bolt and Uber and reintroduce fixed pricing. Juhana Brotherus, an economist, critically commented on this sentiment, stating, "Officials still setting prices. Central planning❤️," in a recent social media post. His remarks underscore a contentious point in the post-deregulation landscape.

The 2018 reform aimed to foster competition and innovation by removing restrictions on taxi licenses and allowing flexible pricing. This led to the re-entry of international ride-hailing platforms such as Uber and Bolt, significantly altering the market dynamics. However, the deregulation has also sparked concerns among traditional taxi operators regarding declining incomes and varying service quality.

According to a study by the Finnish Competition and Consumer Authority (KKV), the deregulation has had varied impacts across regions. While large urban areas saw increased competition and a wider range of services, average offered fares in small and medium-sized regions reportedly increased by approximately 15%, and by 7% in large regions. The report also indicated a decrease in profitability for the taxi sector overall and a decline in average driver income in small and medium-sized regions.

The sentiment quoted by Brotherus, "Two drivers are happy if Bolt and Uber are removed from traffic by the change. They say that next, a common kilometer price should be agreed upon for everyone," reflects a desire within some parts of the industry to revert to pre-2018 regulatory models. This stance advocates for market interventions that would restrict competition and standardize pricing, a move Brotherus likens to "central planning."

The Finnish Transport and Communications Agency (Traficom) and the Finnish Taxi Association have also proposed changes to the Taxi Act, focusing on strengthening consumer protection and service quality. These proposals include more comprehensive driver training, clearer price information requirements, and potential limits on taxi licenses in specific areas, though direct price regulation has not been included in the government's current legislative proposal. The ongoing discussions highlight the complex challenges of balancing market competition with service quality and driver welfare in the Finnish taxi industry.