Cab drivers are calling for better rates and a minimum threshold for prices on ride-hailing platforms to improve their earnings and “protect the interests of the industry”.
Last Monday, the Light Passenger Operators Association, a group of self-employed cab drivers, met with Malta's big three ride-hailing platforms, Bolt, Uber and eCabs.
In what sources described as a tense, four-hour-long meeting, the association lobbied for an upward revision of the rate drivers are paid per kilometre. But Uber and Bolt were unwilling to consider paying drivers more.
A Bolt spokesperson said: “During the meeting, Bolt made it clear that the company sets the prices independently and is not in favour, nor will it entertain, any conversation about prices.”
Cab drivers who spoke to Times of Malta said passengers pay around €1.10 per kilometre for their trip when including the flat starting fee. But self-employed drivers only keep about 70 cents of that.
“The rest goes as commission to the ride-hailing apps and to pay VAT,” one cab driver said.
He said cab drivers must then pay for fuel, insurance costs, repairs and, possibly, a motor loan for their vehicle.
The association confirmed these figures.
When asked if cab drivers earn 70 cents per kilometre, Bolt said, “while we cannot share company financial data, what we can confirm is, on average, active drivers completing rides are making more than double the rate/km quoted”.
The company said the meeting also focused on other issues such as safety and new Y-Plate regulations.
In a statement, the cab drivers’ association said several European countries have introduced a minimum-price threshold.
“With regards to driver earnings, we brought forth a number of case studies and examples that showcase European countries adopting a minimum-price threshold. This would not only improve driver earnings but also protect the interests of the industry, service providers and customers alike.
“Although we understand that this requires a legislative implementation from the regulator and government, we believe that talks with the platforms were crucial on this matter,” the association said.
With regards to driver earnings, we brought forth a number of case studies and examples that showcase European countries adopting a minimum-price threshold
In a statement, eCabs said that a minimum-price policy can only be introduced by policymakers “who have a duty to ensure the overall safety and sustainability of the ride-hailing industry”.
“eCabs is indeed sympathetic to the dire economic realities of all drivers working in the ride-hailing industry,” a spokesperson for the company said.
But eCabs cannot influence the prices charged by other platforms, the spokesperson added.
“eCabs is just one of three major ride-hailing operators in Malta, and as such, is not in a position to change the prices charged by the other operators in the market.”
Replying to questions, Uber said, “we want to provide safe, rewarding and flexible earning opportunities to all drivers working with the Uber app, and we want to raise their standard of work”.
While some cab drivers are self-employed, the vast majority work for fleets that either pay drivers an hourly rate or have a revenue-sharing agreement. In those agreements, drivers are typically paid either half or 60 per cent of the revenue they earn on the ride-hailing apps.
The number of cabs has shot up by almost half in a year, from 2,700 in 2022 to 3,900 this year.
But new legislation published in July means all drivers must have a Maltese or EU licence to drive a Y-plated cab.
Previously, cab drivers could drive Y-plated vehicles with an international licence for a year before having to obtain a local or EU licence.
While the transport ministry said the policy was introduced to increase road safety, government sources said the new law was partly introduced to curb the number of cabs on Maltese roads.
On Monday, cab industry stakeholders discussed the new regulations as well as the question of road safety.