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Taxi service market characteristics in Vilnius

2009-12-29

"Here I met with the company's official approval and support, as the wise employer is aware that together with the union we can do a lot of positive things developing and nurturing the business", - stated A. Bagdonas, and reveals the taxi market.

According to him, Vilnius taxi service companies’ competition is very high, but the quality of service is low. Many companies not ensuring passenger safety and carry passengers as cheaper as possible.

Only few companies pay salaries to taxi drivers. Elsewhere, workers are employed part-time de jure, but de facto they are not paid. Even from part time wage paid only what left from fees to social security.

Each driver once a week must pay the owner a fixed sum of money from 310 LTL to 420 LTL. In order to earn that amount they have to work long hours. The fuel must be also purchased by the driver.

With high unemployment, the situation is well used by the employer: it increases the car park creating jobs, hiring new drivers and reducing tariffs. In many companies the price for 1 km is decreased to 1 Litas (1Euro = 3.45 Litas). However, the amount the driver must pay to the owner is not decreased, while competition growing.

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