Ukraine's Taxi Market Overhaul: Digital Certificates to Legalize 200,000 Drivers.

Ukraine's Taxi Market Transformation

According to Novyny.live: The Ukrainian Ministry for Communities and Territories Development has drafted a reform package for the taxi market, aiming to legalize drivers, digitize procedures, and modernize service regulations. This initiative addresses a significant gap: while only 9,500 vehicles are officially licensed for transport, over 200,000 taxi drivers are actually operating, with a mere 5% currently working within the law. To bridge this, a new 'self-employed automotive carrier' status will be introduced, allowing drivers to obtain an electronic certificate through the 'Ukrtranzbezpeka' information systems.

Key Provisions of the Reforms

The project proposes a simplified taxation model for digital platforms and mandates insurance for both drivers and passengers. Market entry will be set at one subsistence minimum for a two-year period, approximately 3,028 hryvnias. According to Oleksiy Kuleba, the average monthly salary for a taxi driver is 37,500 hryvnias, with the highest wages in Kyiv reaching around 45,000 hryvnias.

The legislative changes will also introduce a new Article 1333 to Ukraine's Code of Administrative Offenses. Oleksiy Kuleba noted that vehicles will feature a QR code inside the cabin, enabling passengers to verify the validity of the driver's certificate, trip insurance, and basic carrier information.

'The next step is for the government to review it and submit it to the Verkhovna Rada for consideration by the people's deputies. Our goal is a transparent market, fair rules for drivers, and a safe service for passengers.' - Oleksiy Kuleba

Following the law's adoption, the market will be given roughly six months for technical preparation and adaptation. As Kuleba emphasized, market entry is designed to be as simple as possible: 'one subsistence minimum for two years, which is approximately 130 hryvnias per month'. This reform of the taxi sector is therefore poised to foster a more transparent and secure transportation system in Ukraine.

The taxi market reform represents a crucial move toward legalizing and regulating a sector long in need of improvement. By implementing these new rules, drivers will gain the opportunity to work legally, while passengers will benefit from services with a guaranteed level of safety. The project, which focuses on digitization and streamlining procedures, aims not only to improve working conditions for drivers but also to enhance the overall quality of service in the transportation industry. These changes are expected to positively impact the economy and ensure greater transparency within the sector. This overhaul is part of broader post-war economic recovery efforts, aiming to formalize a large informal workforce and boost state revenues.