Taxi association raises objections to Estonian monopoly in Latvia

Bolt has become the dominant player on the Latvian taxi market. Photo: Ints Kalnins / Reuters / Scanpix

The Latvian association of taxicab companies has sent the Road Transport Administration an open letter questioning the transport authority's licensing decisions and raising objections to Estonian taxi companies' monopoly in Latvia, the association's representatives told LETA.

«Analyzing the situation in the taxi sector, we see that Estonian companies have gained a dominant position and Road Transport Administration's decisions seem incomprehensible,» the association writes.

The organization notes that two Estonian companies -- Bolt and Forus -- control 99 percent of mobile app-based taxi services in Latvia and have been actively lobbying their business in Latvia while paying taxes in another country. Furthermore, since Bolt has become the dominant player on the Latvian taxi market, many Latvian taxi services providers have been forced out of business. These include Red Cab, SOS Taksi, Smile Taxi, Alviksa, Riga Taxi, Avoiss Taxi and Lady Taxi.

At the same time, the association says that getting license has become difficult for Latvian operators.

This situation has prompted the association to raise questions regarding the length of the licensing process and its questionable provisions. The organization believes that local Latvian business initiatives should be supported, not hindered, in order to promote competition and business activity in Latvia.