AZE.US
Taxi fleets in Azerbaijan are appearing on classified websites as ready-made businesses for sale, a sign that some operators no longer see the sector as profitable.
Prices vary by the number of vehicles. Some listings offer taxi fleets for 150,000 manats ($88,200), 300,000 manats ($176,500) or even 600,000 manats ($352,900).
Ali Valiyev, an entrepreneur who has worked in the taxi business for years, said the main problem is that operating costs are now exceeding revenues for some fleet owners.
He said one of the biggest difficulties is finding drivers. According to Valiyev, many drivers are leaving because the job no longer brings enough income and because fines have become a constant burden.
A taxi driver who spends 10, 12 or even 15 hours a day behind the wheel can face fines almost daily, he said.
The second problem is pay. Valiyev said current taxi tariffs do not allow business owners to earn enough while also paying drivers a decent wage.
He said some trips are calculated at only 10, 15 or 20 qapiks per kilometer, roughly 6, 9 or 12 cents. Under that model, he argued, neither the driver nor the fleet owner has enough margin.
Transport expert Eldaniz Jafarov said taxi prices in Baku cannot be described simply as cheap or expensive.
Compared with previous years, he said, prices have increased mainly for short-distance rides and ride requests. A taxi call that once cost about 1.60 manats ($0.94) now costs roughly 2.50-3 manats ($1.47-$1.76) in Baku.
But longer-distance fares and per-kilometer prices have not risen as sharply, he said.
That makes the taxi market more complicated than it looks from the passenger side. For customers, taxis may still seem accessible. For fleet owners, however, the business model is under pressure from fines, driver wages, maintenance costs, competition and limited margins.
Some operators are now choosing to sell their cars and businesses, then move the money into other sectors.
AZE.US