As Malta celebrated New Year last Sunday, many of those who decided to ditch their cars for the night were pleasantly surprised that cab prices seemed to have gone down.
There was nothing for cab drivers to celebrate, however.
“Drivers were putting in more rides but earning less revenue,” said Aron Gatt, president of the Light Passenger Operations Association.
The association represents drivers and small operators licensed to drive light passenger transport vehicles, also known as Y-plate vehicles.
Last Sunday evening, many going out for the night made the responsible decision of booking a taxi instead of driving, possibly under the influence of alcohol. And those that did said the prices were more affordable compared to the previous New Year’s Eve.
In 2022, for example, some customers had to fork out €57 for a ride from Għaxaq to Valletta. Another customer paid €25 from Żabbar to Sliema and the cheapest return trip was €62.
This year, a trip from Sliema to Żebbuġ cost just €11 and the return €14. Another user reported paying €9.40 from Gżira to Mosta and €30 to return.
But while customers made savings, cab drivers are complaining.
“When compared to the previous New Year’s Eve, there were 30 per cent more rides with 20 per cent less revenue,” Gatt told Times of Malta.
In one of their busiest nights, he said, drivers earned much less in proportion to the kilometres they put in.
He said drivers and owners of Y-plate vehicles have seen a steady decline in cab prices since 2019.
“From 2019 to date, there has been an almost 40 per cent price cut. The demand and supply for taxi services has increased drastically, and the prices to get more customers have dropped. Prices are so low that some drivers are working overtime to make ends meet.”
Drivers, he explained, had to fork out running costs such as insurance, daily fuel and maintenance of vehicles.
Self-employed drivers do not benefit from leave, bonuses or extra pay for holidays, he added.
“Of course, from a customer perspective, the dip in prices is a good thing, but ideally we find a balance where the prices are stable, both for customers and drivers.”
The association made a similar call last year as it lobbied for an upward revision of the rate that drivers are paid per kilometre, but Uber and Bolt were unwilling to consider paying drivers more.
Replying to questions, an eCabs spokesperson said the cost of rides in Malta is set by the open market, and that in the absence of regulations on minimum rates, the price per kilometre is set by the operator with the lowest fares.
“eCabs shares drivers’ concerns about the current price per ride but is powerless to increase the minimum charged by other operators,” the spokesperson said.
Asked whether there had been an increase in bookings, eCabs said it registered a ‘double-digit’ growth in rides during the holiday season when compared to the same period the previous year.
“It is clear that the Maltese market increasingly views ride-hailing as the best transport alternative to the private personal car,” the spokesperson said.
“We believe that moving away from total dependence on the private personal car and embracing a multitude of mobility and transport solutions holds the key to improving our quality of life and unlocking the potential of these islands.”
Questions were also sent to Bolt.