Is it really worth taking a taxi in Budapest?

The number of taxis in Budapest is on the decline, while their fares have been continuously rising. Budapest’s streets are dominated by two major taxi companies, prompting us to question the value of taking a taxi given its escalating cost and negative environmental impact.

The taxi business in numbers

As G7 writes, car usage in Hungary is nearing pre-COVID figures, but the same cannot be said for taxis in Budapest. Over the past few years, both taxi use and the number of taxis have been showing a decreasing tendency. BKK reports that in 2019, there were 6,478 taxis roaming Budapest’s roads. Presently, there are nearly a thousand fewer taxis. We must add that the 2019 data already indicated a decline compared to the figures from 2016–2017. Despite the diminishing taxi presence, Budapest still boasts a relatively high number of official and registered taxis on an international scale.

Taxi fees

It is quite shocking to think of that back in 2013, you could travel 800 metres by taxi for the price of a BKK single ticket; now, due to BKK’s fare increase, you can cover 955 metres for the same cost. A recent study has also shown that taking a taxi in the countryside is now more expensive than in Budapest.

The streets are ruled by two major companies

Gathering data on the taxi business is challenging, given that most drivers are self-employed. Thus, it is not feasible to collect turnover data from the company database or the HCSO database. Analysing the data of companies that provide taxi services as their main activity, it’s evident that dispatching is a lucrative business: in 2022, pre-tax profit accounted for 10% of turnover. The market is heavily centred in Budapest, with companies there generating 85 percent of the turnover. Despite inflation, Budapest’s taxi market has already rebounded to pre-COVID turnover levels. Two companies, Bolt and Főtaxi, dominate the market, contributing to half of the revenues. Uber, once a popular alternative, is no longer an active player in the Hungarian market.

Pollution

While taking a cab may be costly, there’s an environmental toll as well. OECD’s recent analysis indicates that in big cities, taking a taxi is the worst choice in terms of carbon emissions. Surprisingly, driving your car in a city is less polluting than opting for a taxi. Additionally, taxis accommodate fewer passengers due to the driver taking up space, contributing to their higher carbon emissions. Nevertheless, taxis have advantages, such as not occupying parking spaces. Furthermore, taxis in Budapest can utilise the bus lanes, which can come in handy during peak hours.

Read also:

• Taxi service in Budapest to change from January 2024
• Taxi war breaks out: Bolt will not retreat but fights back the attacks of Hungarian cabbies