Prices of cabs have increased since a government clampdown on work permits for third-country nationals, ride-hailing platform Bolt has confirmed.
A spokesperson for the company said fewer available drivers coupled with higher demand had led to “longer periods of surge prices and longer waiting times.”
Surge prices refer to higher prices that usually kick in at peak times to encourage drivers to work during busy periods.
It comes a week after hundreds of people applying to work as cab drivers and food delivery couriers had their work permit applications refused.
The government said new applications by third-country nationals for cab driving and food courier work permits were being turned down because the market had "reached saturation".
Over the past several days, social media users have highlighted higher-than-expected prices and longer waiting times on the app for Bolt, the most popular ride-hailing platform in the country.
James Vella Clark said he was being quoted up to €15.50 on the platform for a cab ride from Mrieħel to Marsa on Wednesday.
"This move to cut down on cab drivers is not only very badly timed at the height of summer but has already started pushing prices up," he said.
Msida councillor Christine Amaira replied she had faced “almost double” the normal price for a journey from Msida to Valletta that week, while writer Iggy Fenech said he had been quoted more than €50 on rival platform eCabs for a journey from Birkirkara to Sliema the previous morning.
Many cab drivers work on both the Bolt and eCabs platforms, and Uber.
Meanwhile, in a post on Bolt’s Facebook page the same day, Isabel Danilovic asked why the company seemed to have been “charging double lately,” adding it had happened more than once.
The company directed her to an article explaining ‘dynamic [surge] pricing’ in response.
A spokesperson for Bolt told Times of Malta that an “imbalance between the increasing demand and lower supply of cabs has resulted in longer periods of surge prices and longer waiting times.”
In a thinly veiled reference to the recent work permit clampdown, the spokesperson said the company had “reached out to government authorities to discuss the ongoing situation and find a solution.”
She added the situation should be seen “in context”, however, noting that “less than 5% of third-country nationals currently in the country are registered to operate as couriers or cab drivers in Malta via the Bolt platform.”
Workers in the ride-hailing and food delivery sectors have been in the spotlight recently following news the government’s visa and residency permit agency Identità had refused hundreds of work permit applications from TCNs applying from abroad or those in the country seeking to move to a new employer.
On Tuesday, Prime Minister Robert Abela said that TCNs whose labour was no longer needed must leave the country, and that “only those who are invited legitimately are welcome”.
“I understand their situation, but I also have a duty to the national interest and if our job market is indicating saturation, it means that workers who aren’t legitimate must leave the country," he said.
Questions were sent to eCabs on Thursday afternoon.