Private drivers warn of income impact from state taxi scheme

The Drivers' Association Maldives has raised concerns over the government’s launch of a taxi service, stating that it will affect the income of private taxi drivers.

The service, introduced by Maldives Transport and Contracting Company, includes a fleet of 150 electric vehicles and was inaugurated on 2 of this month. Authorities have stated that rides will be provided without charge until a mobile application for the service becomes operational.

Private taxi drivers have expressed opposition to the initiative.

In a statement issued on Saturday, the association said the service would result in a loss of income for drivers.

“The Drivers’ Association believes that the government should not enter into business competition in a way that affects income earned by individuals through private work,” the statement said.

The association stated that the taxi sector supports the livelihoods of many households and that government involvement could affect market conditions and regulatory practices.

It further noted that private taxi operators, including drivers and application-based services, are subject to regulations and penalties, while alleging that the government service is operating outside some of these requirements.

The association said such differences in enforcement could affect confidence in the regulatory framework.

“The government’s entry into the private business market using state resources is a violation of several provisions of the Law on Creating and Maintaining Competition in the Business Sector,” the statement added.

Private drivers had previously raised concerns regarding the introduction of the service.

The vehicles used for the service were imported last month. Of the total fleet, 70 vehicles are designed to operate in areas with narrow roads in Malé.