Budapest taxi market disrupted? Uber lures drivers away

Uber’s recent launch in Budapest has led to significant bonuses for drivers, with some earning up to HUF 100,000 for completing 30 rides in the first few days. Many drivers have switched from Bolt and Főtaxi to the American ride-sharing service provider, drawn by the promise of competitive offers after the initial three-month commission-free period. In response, Bolt has reduced its commission from a variable 12-25% to a fixed 9%, but may need to adjust further.

Uber luring away drivers from other taxi service providers?

For the first three months, Uber drivers can operate without any commission, giving Uber a significant edge in the Hungarian market. Industry insiders say the American company’s initial fleet largely consists of experienced drivers who switched from competitors, mainly Bolt and Főtaxi, Economx reports.

Elek Nagy, the owner of the Főtaxi group, noted that while F-Mobilitás Ltd. connects them, Uber and Főtaxi are competitors in the passenger transport market. Főtaxi’s large airport fleet has notably decreased at Ferihegy (Budapest Airport) in recent days.

Bolt’s usual commission is 25%, which can be reduced to 12% by meeting specific ride targets. The American ride-sharing service provider’s current offer of zero commission for three months is met by Bolt’s fixed 9% rate, but Uber is prepared to lower it further if necessary, potentially to 6-7%, or extend the commission-free period.

Uber offers huge bonuses to drivers

Founded in San Francisco and managing its European operations from Amsterdam, Uber enhanced its Budapest launch by offering drivers bonuses of HUF 50,000 for 10 rides on launch day and HUF 100,000 for 30 rides over the weekend. Some confusion arose as drivers expected the launch at 1 PM, while the app started assigning rides earlier in the day.