Russia only wants locally produced taxi vehicles - even if they are Chinese

By: Wim Faber, Dutch Journalist and Taxi Specialist, Dutch Belgian Magazine (Magazine Personenvervoer) 

What are Europe’s nationally differing hot topics?

If you’ve ever written a regular column, I’m sure you are familiar with this seasonal feeling: with the end of the year in sight, many columnists get into a reminiscing mood. So many of us are looking back rather than forward. Although I was not thinking of doing that, I did install myself in a comfortable chair, fortified by early seasonal cheer provided by a large glass of Glühwein (mulled wine).

Don’t worry, I won’t be regurgitating Taxi-Europe’s 2025 and come up with magical solutions. Although there are many similarities, there are also very many geographical, operational and regulatory differences between the US and Europe. But before I delve into those, I would like to wish you a Happy Thanksgiving and an excellent festive season! And I’m truly sorry I couldn’t join you at Mobilize 2025 in Las Vegas.

Let’s talk about Europe: price, regulation and driver classification

Looking for a moment at my stamping ground, Europe (I’m sure you’re familiar with what goes on in North America), there are several topics which keep vying for (urgent) attention:

The fierce price and regulatory competition between the taxi industry and often aggressively operating platforms, played out in different regulatory concepts, the recurrent lack in effectively policing these regulations, endless legal wrangles at every level of judicial competence plus odd examples of semi-successful cooperation. Main differences: driver classification (employee versus independent operator, or as you say self-employed driver), platform-PHV's seeking and exploiting loopholes in existing transportation regulation and platforms manipulating driver data (and income) via AI-driven systems. Germany ‘s taxi industry is hoping to reign in platforms which are setting ultra-low fares illegally via ignoring local regulations by creating minimum fares for the PHV’s they use.

One year left to the EU Platform Workers directive coming into force providing a Europe-wide classification system.

Driver classification: EU Platform Workers directive

In some things Europe, despite its 27 different countries and differently opinioned governments, is quite well-organised. Like in driver classification. When it comes to the EU Platform Workers-directive, coming into force in a year on December 2, 2026 across the whole of the European Union (EU), this should help to correctly determine the employment status of platform drivers and improve their working conditions weeding out false independent drivers, and making the use of platform algorithms more transparent. In many EU countries the status of false independent workers is already a hot and recurrent topic. Through the directive EU member countries will establish a legal presumption of employment when certain facts pointing at control and direction are found in platforms’ modus operandi.

What are Europe’s nationally differing hot topics? Autonomous taxis is one of them. Here Volkswagen’s MOIA trialling in Hamburg.

Electrification, autonomous taxis

A topic closely connected to the actual vehicles used is the electrification of fleets many European countries are pushing for. I’m talking about sedans as vans – due to batteries creating weight issues in NEMT and transportation of wheelchair-bound clients – are lagging behind ordinary taxi models in the e-stakes. When it comes to autonomous taxis, Europe, with regulations differing between 27 EU member states, is well behind China and the USA. Cardinal question: who will own, operate and manage the autonomous fleets? The technology company (like Waymo)? Or will the taxi companies and platforms, with their expertise in different fields, grab a seat at the operational table? The use of autonomous taxis in Europe for the moment is limited to trial schemes, although Waymo is eager to start operations in London in 2026 and Volkswagen’s MOIA has been testing in Germany.  

GM-clone Ravon, made in Uzbekistan, proved to be popular on the Russian taxi market.

New fields of operations?

Types of transportation, despite the vehicle type or its operational mode there is a wide and rich field in transportation options lying bare open for development. Not just as a product of the developments outlined above, but developed and increased from a rich seam of transportation history and in partnership with suppliers in different fields, like public transport operators, medical emergency operators, care and mobility institutions and local governments. The taxi industry (in Europe) is in an excellent position to complement operators dealing with smaller transportation streams in public transport and social sectors as and when required in smaller density cities or rural areas. Autonomous taxis on fixed routes add to that innovation. One important field in transportation is healthcare. In France this type of transportation is largely run by the taxi trade. Attempts by the French government to make cutbacks in this area this year, have run into a strong strike readiness by the taxi operators all over the country.

Insurance and fire prevention

Insurance and fire prevention are challenging issues and stem from all points above. Electrification has challenged those with e-buses in the bus sector to cover risks when it comes to vehicles and garages. Particularly fires involving lithium-ion batteries proved extremely hard to fight. With the increasing number of e-vehicles being part of bus and taxi companies, stringent demands on fire prevention insurance become a critical and costly factor.

Meanwhile in Russia...

Although not exactly part of Europe, I just can’t help noticing Russia’s bizarre exploits on the taxi market. The Russian government keeps further tightening its grip on the national taxi market, quite an important market as many Russians who can’t afford a car, prefer a relatively cheap taxi to public transport. Last year all taxi apps were ordered to report trips to the secret service FSB. Then the government made it more difficult for immigrants from former Soviet republics - the largest group of taxi drivers in Russia - to continue working in the Russian federation. ‘Localization’ is the latest thing, mainly driven by the pressing economic sanctions following the country’s aggression in Ukraine.

From March 1, 2026, only domestically assembled cars will be allowed to operate as taxis in Russia. Even if they’re from China, where the most popular brands come from. Foreign car producers will have to relocate their production – or part of it – to Russia in order to sell their vehicles to the Russian taxi industry. Most existing vehicle licences for taxis still have about five years life in them, but after that taxi drivers and particularly fleet operators will have to switch to more expensive ‘localized’ brands. Taxi fares may go up and some drivers, unable to switch to more expensive brands, may be forced out of the industry. 

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Wim Faber