Czechia to end price caps for alternative taxi services

According to the Ministry of Finance, currently high competition means that prices should stay low regardless, therefore negating the need for regulation.

Thomas Smith

Written by Thomas Smith Published on 23.07.2024 10:37:00 (updated on 23.07.2024) Reading time: 2 minutes

The Czech government has announced that, starting January 2025, alternative and contractual taxi services – such as those operated by ride-hailing companies Bolt or Uber – will no longer be subject to price ceilings. Classic taxi services, in which the fare is not known before the start of the journey and is calculated via a meter, will continue to have price caps.

Prices unlikely to go up

Minister of Finance Zbyněk Stanjura bases “market monitoring” on the decision: "We assume that after the cancellation [of caps]...there will be no increase in prices due to great competition,” he said. “Alternative taxis are already at significantly lower prices than regulated, classic ones," Stanjura added. The ministry says it will continue to monitor the market to ensure fair pricing.

The Finance Ministry adds that users can compare different providers to get the best price from alternative or contractual taxi services.

Currently, the Finance Ministry authorizes municipalities to set a maximum price for taxi services, but only Prague and Brno currently use this option. This means that these cities will now have to revise their regulations. In Prague, the maximum price is CZK 36 per kilometer.

There is a chance that, following the new regulation, alternative taxi providers like Uber or Bolt may tick up their prices – though change will most likely be marginal.

Taxis versus ride-sharing apps

Classic taxis have long held a reputation for – sometimes – overcharging foreigners and tourists in Prague. To help put a stop to this, the City of Prague announced in 2022 that Uber would be the official provider of journeys to and from Prague Airport. This allows passengers to travel for a fixed, pre-determined fee. 

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Czech journalist and online influencer Janek Rubeš (also known as the Honest Guide), who spoke with Expats.cz earlier this year, told us how he helped establish a law that prevented taxi drivers from grossly overcharging tourists. Five years ago, the capital’s taxi drivers took to the streets to protest against a separate law that – according to the drivers – unfairly favored alternative taxis and brought in cheap, unsafe labor to the market.

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