With more than a third expensive taxi from 9 May this year in Budapest, always according to the Hungarian Competition Authority (GVH) instead of a significant increase in the official prices of taxis in Budapest intensifying competition would have been a more advantageous solution. Taxis in Pest are very expensive and worse: for example, it is slowly impossible to order in advance.

The taxi crashed in two years as a result of the pandemic. The main reason for this lack of workerswhereas while at the beginning of 2020 6754 people had officially provided personal taxi services in the capital, according to the latest statistics currently only at 5070. Among other things, this has led to the fact that the fulfillment of taxi orders in Budapest is currently hampered by the fact that there are often no taxis or a free car is slowly being found.

there is also an increasing demand for passenger transport services offered illegally, typically on various social networking sites. Considering that the capital is the largest domestic taxi market, inadequate regulation can cause declining efficiency and major social damage in this area.

With the outbreak of the Russo-Ukrainian war and the introduction of EU sanctions, energy and fuel prices in Europe are rising sharply. In response to the events, the Orbán government extended the petrol stop introduced at the end of last year until 1 July. In any case, the capital will, among other things, vote for a large-scale tariff increase of 35 percent. In English: they lifted despite the petrol stop.

Spectacular taxi fare

The agreement between the local government of the capital, the employees of BKK and the representatives of the personal taxi service companies and interest groups in the capital jumped from May 9, the previous basic fee of HUF 700 to HUF 1000, the kilometer fee of HUF 300 to 400 and the HUF 75 per minute fee to 100 .

For those wishing to take a taxi, this difference is very spectacular, as in a previous practice, a half-hour, 20-kilometer journey between Budapest Liszt Ferenc and Deák Ferenc tér cost 8-9 thousand forints, in addition to more than You have to pay 12 thousand forints. All this so that the quality of service has not improved, to put it mildly, that is, travelers get the same, only much more expensive. end of the taxi drivers could not rejoice for long either additional revenues, as some companies have increased their membership fees in response to the tariff increase, while others are already planning to do so.

In any case, experts are divided on what would have been the right solution, because although it has become inevitable to decide on an increase in prices, for example because of the increase in the minimum wage, opinions differ on its extent and form.

It is an aggravating circumstance that there has been an official price for taxis in Budapest since September 2013, so the tariffs are fixed and thus the possible advantages of price competition in the various markets are not currently in force. Meanwhile, the ever-higher official prices are reducing the use of taxis, there is no spectacular change in the time of service, and these circumstances have an overall effect on the need for further remuneration. According to the Hungarian Competition Authority, this regulatory trap could be overcome if the local government minimized the price regulation intervention, ie left room for competition and the development of equilibrium market prices.

A semi-alternative

Although the capital has promised, in addition to the increase, that the current taxi passenger transport will soon undergo a more serious structural reform, and the BKK will increase the rigor against unlicensed passenger transport, this is the least consolation for passengers entering the taxi. . they face the new and pepper price list while sitting.

Due to the price increase, it is no wonder that many people are looking for an alternative, and this is already reflected in the increase in the turnover of driver services, the first of which started to appear in Budapest after 2000. Driver service, or driver assistance, or substitute driver is a service in which the driver drives a car owned or used by the customer. It is essentially different from the taxi service. Chauffeur service for others may only be provided by legal entities with a tax number and liability insurance. And although there are as many chauffeur services, so many different prices, in terms of fares, they are usually cheaper than if the customer had taken a taxi back and forth.

In the case of companies offering a serial service, a distance of 20 km, as mentioned above, is currently between HUF 6,000 and HUF 10,000, based on the prices available on the Internet.

Another important aspect of the service is that there is almost always a free driver and the service can be pre-ordered at most companies well in advance.