Latvia, Transport

The taxi companies underline that it is hard to give the precise worth of the taxi market in Riga due to the large number of market players. Furthermore, many of the taxi companies are also engaged in other types of business activity, such as passenger transportation in minibuses, writes LETA.

According to rough estimates, each taxi, depending on the size of the company, brings in LVL 300 to LVL 800 per month for its enterprise. During the boom period it used to be LVL 1,000 to LVL 3,000.

"The fall has been dramatic; of course it is directly connected with the economic situation in the country. The crisis has also affected the middle class, the main taxi business customers," head of Riga Taxi Genadijs Aksjonovs said.

However, he also added that the sector still has a large growth potential, for example, serving local governments. It is a common practice abroad to entrust approximately 30% of local governments' transportation services to taxis, but municipalities in Latvia rather choose to sustain their own car pools and busses.

In order to survive the tough times with plunging turnover figures, taxi companies attempt to balance their costs and economize wherever possible. Several taxi firms have also started operating in regions in hope to acquire an additional market share.

The arrival of the new market player Baltic Taxi has strongly influenced the market. Baltic Taxi is a strong competitor, especially to the taxi companies working at the Riga Airport.