Striking report on taxis in Istanbul: Their annual income is jaw-dropping, but look who is winning?

The “Transformation of the Istanbul Taxi Ecosystem” report, which includes remarkable data on the taxi ecosystem in Istanbul, has been published. The research prepared by EY Turkey reveals the inadequacy of the number of taxis in the city, complaints about service quality, and the imbalance in income distribution. According to the report, 20,311 taxis serving in Istanbul create a huge economy of 47.8 billion TL annually. However, in this system where plate owners and intermediaries make a profit, the income of taxi drivers remains quite low.

THE NUMBER OF TAXIS IS INSUFFICIENT, THE DEMAND CANNOT BE MEET

The report states that there are currently 20,311 taxis in service in Istanbul and 40,622 drivers using these vehicles. However, despite the fact that Istanbul’s population has doubled and the number of tourists has increased tenfold in the last 30 years, the increase in the number of taxis has only been at a level of 17 percent. This situation has made it difficult to find a taxi in the city and has led to the widespread use of illegal taxis. According to public opinion surveys, 86 percent of citizens say they have difficulty finding a taxi, while 33 percent say they always have a shortage of taxis.

REVENUES ARE BREAKING RECORD BUT WHO WINS?

According to the research, taxis in Istanbul make an average of 36 trips per day, generating a total annual income of 47.8 billion TL. However, this income is not directly reflected on taxi drivers. With taxi plates becoming an investment vehicle, the biggest income goes to plate owners and brokerage firms. While plate owners and tenants earn high incomes, the income of drivers behind the wheel remains quite low.

COMPLAINTS ABOUT SERVICE QUALITY AND SECURITY ARE INCREASING

There are serious complaints about the quality and safety of taxi services. According to research data:

More than 50 percent of tourists say taxi drivers charge high fees, take long routes and have difficulty getting around due to language barriers.

While 64 percent of local passengers say that taxi drivers are rude, 54 percent complain that they do not take short-distance passengers.

42 percent of passengers say they do not feel safe in a taxi.

ARE DIGITAL APPLICATIONS THE SOLUTION?

According to the report, the proliferation of digital taxi apps could help regulate the system. Currently, 30 percent of taxi drivers use these platforms, while 55 percent of trips are made through digital apps. However, high commission rates and fixed fee policies on the apps pose a major problem for both drivers and passengers.

FIVE STEPS FOR TRANSFORMATION OF THE TAXI SYSTEM

The report emphasizes that a more modern and organized taxi ecosystem should be created in line with Istanbul’s 2027, 2030 and 2035 goals. The suggested transformation steps are as follows:

• New taxis and operational standards: Commissioning of 2,500 new taxis approved by UKOME and determination of digitalisation requirements.
• Legislative arrangements: Preparation of new legal regulations for Reservation Personal Transport (RBT) agents.
• Dynamic pricing: Making pricing variable in digital taxis and adjusting it according to the supply-demand balance.
• Taxi corporatization: Encouraging corporatization to make taxi services more corporate.
• Income tracking and taxation: Increasing transparent tracking of income and taxation through digital platforms.