The background of BEAT’s turn towards cooperating taxi drivers

Of Foti Foteinou

BEAT proceeded with a significant modification of its commercial policy. As of today, the well-known online platform has imposed a pre-rental cost of 1.92 to 2 euros on all taxi calls through BEAT.

With this change, which burdens the passenger, the company aims to increase the income of cooperating taxi drivers, in order to meet the increased needs of the summer season.

But how did BEAT arrive at this decision? According to analysts of the passenger transport market, BEAT, like other online platforms, found losses / shortages in the number of cooperating drivers.

Many drivers, due to the explosive rise in fuel, preferred not to choose BEAT routes, in order to avoid the cost of supply (9.7% before VAT).

Also, many drivers, either channeled to the islands, or chose to “leave” the taxi industry, preferring to work, e.g. in the delivery (e-food) sector.

Based on the above, the radio taxis of Athens, a few days ago, decided to impose a fare of 2 euros on the passenger, which is a legal charge according to the law, which can range from 0 euros to 5.65 euros. In this way, they seem to have “won” drivers.

Examining the new conditions and after launching an incentive program for the cooperating drivers, which brought concrete results, BEAT decided to proceed, and it, to the next step: The imposition of pre-rental costs from 1.92 euros – 2 euros to the passenger.

What is it like to drive a taxi in Greece?

Before announcing the imposition of pre-rental costs on the passenger and awaiting the apparent decisions of the Ministry of Transport to adjust the taxi fares, BEAT published, a few days ago, the research “Investigation and Evaluation of the Current Situation and the Developing Policies in Athens”.

According to the research, with the cost of using taxi services in Greece being one of the lowest in Europe, the rapid increase in fuel, combined with the accumulated liabilities from the decade-long economic crisis, have reduced the incomes of taxi drivers.

Today, with the demand for taxi services, as reported by BEAT, has skyrocketed by + 61% compared to 2019, hundreds of vehicles remain out of operation, due to high operating costs. This has resulted in the suffering of thousands of citizens, who are unable to find a taxi during rush hour.

In particular, according to BEAT, the huge increase in fuel costs and the highest cost of licensing, have significantly reduced driver incomes, pushing almost 2,000 vehicles out of the market due to high operating costs, despite excessive demand.

“It is so unprofitable to operate taxis in large urban centers that a significant number of drivers choose to work almost exclusively at ports and airports, in order to reduce costs and prioritize high-value routes.

“All this, cumulatively, significantly reduces the service possibilities of the city’s residents, resulting in high waiting times for passengers,” the company said.

Indicatively, according to the results of the survey, 67% of taxi drivers in Athens work for more than 12 hours a day, making 20% ​​of their kilometers empty without a passenger.

In fact, 96.3% of drivers answered that they work six days a week, with 55.3% declaring seven days of work in order to make ends meet.

Competition in taxis is intensifying

In taxis and especially in the summer, the competition is quite intense. In Athens, it is estimated that about 20 radio taxis and platforms are active, such as BEAT, UBER and Taxiplon.

As mentioned above, the demand and transportation of taxis in large urban centers and in particular, during peak hours is expanding, which creates additional needs to meet it.

Respectively, the needs of the citizens for fast, safe and “green” transportation are expanding, with a combination of means of transport (from electric skate to metro and bus and taxi and rented vehicle).

Now, several digital taxi platforms, such as BEAT, want to expand the “fan” of their services. For example, BEAT aspires to become an integrated urban mobility platform.

Once there are some legislative interventions, BEAT, as it has announced in the past, wants to integrate in its platform all transport operators and means of transport (metro, buses, trolley, tram, taxi, suburban, scooter, bicycle, sharing) bicycles , so that the passenger has all the alternatives, adjusting his movements.

According to executives in the passenger transport market, “the era of Mobility as a Service has begun in the rest of Europe and Greece will follow this trend.”