Taxi fares can rise again in Budapest while ‘banned’ Uber returns
Two taxi trade unions in Budapest are pushing for an increase in taxi fares, prompting negotiations with Mayor Gergely Karácsony. Meanwhile, Uber is poised to re-enter the market through a partnership with Főtaxi, despite previous regulatory hurdles that led to its exit in 2016. Now, the American company claims that their app was accessed over 100,000 times, even though they have not yet re-established their presence in Budapest.
According to infostart.hu, the National Trade Union (Nemzeti Szakszervezet) and the Confederation of Independent Unified Trade Unions (Független Egységes Szakszervetek Szövetsége) are seeking talks with Mayor Karácsony to address the necessity of fare adjustments due to rising general costs and fuel prices, alongside the state of the Hungarian economy. They cite a continuous surge in fuel prices, reaching 20% in Hungary, as a key factor behind their proposal for discussions with Budapest’s leadership.
Moreover, they aim to address regulatory matters concerning bike and car couriers, including parking, waiting times and the use of bike lanes.
Uber returns to Budapest
Meanwhile, Uber decided to return to Budapest by cooperating with Budapest’s Főtaxi. The American company had to leave the capital in 2016 following the government’s taxi regulation modifications with which they could not comply. They had 1,200 drivers and 160 thousand passengers then. They tried to negotiate with the government, but the Orbán cabinet did not want to reach an agreement with them. They supported the requests of the Hungarian taxi drivers instead. Now, it seems round 2 comes in the “fight”.
Uber reports that its app was accessed over 100,000 times in Budapest in 2023, underscoring the demand for its services in the Hungarian capital.
According to Világgazdaság, the partnership between Uber and Főtaxi promises to revolutionise the local transportation landscape, offering enhanced travel options for both residents and visitors while expanding Budapest’s traffic network. Uber assures compliance with all Hungarian regulations, signalling a commitment to operating within legal frameworks.
New taxi powerhouse in Budapest?
Uber emphasises the efficiency gains for drivers enabled by its technology, reducing downtime and optimising passenger pickups. The collaboration with Főtaxi is poised to benefit both locals and taxi drivers, giving a boost to Budapest’s transportation system.
Elek Nagy, president of Lexholding’s board of directors, the parent company of Főtaxi, expresses enthusiasm for the technological innovation brought forth by Uber. This collaboration will enable customers to access Főtaxi’s services seamlessly through the Uber app, reinforcing Főtaxi’s position as a leader in Budapest’s taxi market.
Uber’s global reach now spans over 100 million users across more than 10,000 cities worldwide.
F Mobilitás Ltd, a subsidiary of Főtaxi responsible for the new venture, was officially registered in Hungary on 16th January. Főtaxi retains sole ownership of this subsidiary, signalling its commitment to this innovative partnership.
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About flipping time. The howls from people expressing surprise and disappointment that Uber didn’t operate was deafning. It’s not that clients were wanting to travel at rates below official taxi prices, they simply wanted the familiar user interface and reliability of the Uber app.
Stand out services such as women drivers for only women clients should be added to the menue offered. I have used such services when traveling alone in unfamiliar locations. And not having someone at the wheel who is constantly talking to someone in their personal life or workplace via their blue tooth etc is the better way to treat customers. Doesn’t matter if they are in the back, you can play soft music or talk generalities without facing one another. Those taxi drivers who ignore customers always make me feel irrelevent, then they look for generous tips. Crass.