Article citation information:
Vailiyev, V., Dashdamirov, F., Gurbanov, A., Ismayilova, A. Analysis
of taxi service organizing and regulation for Baku city. Scientific Journal of Silesian University of Technology. Series
Transport. 2023, 118, 229-242.
ISSN: 0209-3324. DOI: https://doi.org/10.20858/sjsutst.2023.118.16.
Vilayat VAILIYEV[1], Fuad DASHDAMIROV[2], Azer GURBANOV[3],
Aynura ISMAYILOVA[4]
ANALYSIS OF TAXI SERVICE ORGANIZING AND REGULATION FOR BAKU CITY
Summary. With the
expansion of the use of digital technologies, the nature of almost all service
industries has changed. Taxi services are no exception. The use of mobile
applications, and the creation of call centres, have simplified the access of
passengers to taxis and created a new situation. Despite this, with the
emergence of a new situation, new problems appeared. This article aims to study
taxi services organization and regulation. Thus, surveys were conducted to study
attitudes towards offered services for passengers and drivers, the main
participants in the taxi market. The questionnaires are aimed at studying the
satisfaction of passengers and the attitude of drivers to working conditions.
The total weight of using a taxi in comparison with other types of urban
transport is determined. The frequency and main reasons for requests for taxi
services were identified. This paper also studied the degree of use of mobile
applications for calling a taxi and the distribution of orders between taxi
companies. Surveys among drivers were mainly aimed at studying the mode of
their work and their attitude to the conditions offered by taxi companies. To
solve the identified problems, an appropriate regulation method through a
single digital platform was proposed.
Keywords: taxi
service, mobile applications, passenger satisfaction, taxi drivers, digital
platform
1. INTRODUCTION
Different service sectors have different characteristics
for the formation of market relations. The taxi market is no
exception. With the development and widespread use of
information technology, the taxi market has assumed a new dimension.
According to the classical taxi concept, passengers use
taxi services directly at the taxi rank or on city streets and roads. However,
with the development of modern means of communication, a new era of taxi orders
began. Favourable conditions arose for intermediaries
(aggregators) who want to systematize their activities and turn this activity
into a business. Intermediaries charge a fee for
the services provided, directing orders received from the population for taxi
services to drivers. Orders are accepted through call centres and mobile
applications. Thus, a natural digital platform appeared
in the taxi market. Under current conditions,
companies with experience in relevant markets on the global market have been
able to capture a significant share in meeting market demand by offering more
flexible and efficient (material and physical) conditions. Offered mobile apps guide customers to find an empty vehicle
closer to them.
Despite many similarities in the organization
of taxi services in cities, there are some differences in the work of many taxi
services in modern operations.
These differences change the overall character of the taxi market. There are
some differences in prices for taxi services for passengers in different
cities. Some cities have an extensive public transport network. In this case, taxi services arise only when there is a
special demand (faster or more convenient delivery) and becomes an expensive
service.
The price of taxi services in the cities of
the world is calculated for each landing, and additionally, per kilometre. According to the
decision of the Cabinet of Ministers of the Republic of Azerbaijan [1], these prices in Baku should be calculated at the rate
of AZN 1.5 (USD 0.88) per landing and from AZN 0.5 (USD 0.29) per kilometre
depending on the distance. However,
sometimes, taxi companies offer lower prices. Especially during the lockdown, some companies increased the
number of trips per car per day and reduced tariffs below the market rates.
As a result of the growing demand for taxis, more than
50,000 taxi cars have appeared on the streets of Baku. The number of
vehicles licensed by the Baku Transport Agency for the provision of relevant
services over the past 6 years (2016-2022) amounts to 43,775 units [2]. In addition, there are taxis
in Baku that serve passengers on fixed routes for a single ride charge. The activity of such taxi services is not officially allowed;
however, the number of such fixed routes in Baku is no less than ten.
As can be seen from the above, the market for taxi
services in Baku city is not well-regulated. An analysis of the current state of the organization is necessary
to make decisions regulating the operation of taxi services. This is possible with a regular
study of the situation in the taxi market.
2. LITERATURE REVIEW
In large cities, public transport and taxis complement
each other. Therefore, when determining the demand for
taxi services, the operation of public transport should be considered [3]. In some cities
around the world, there is the practice of using minibuses as public taxis [4-6]. For a long time, minibuses were used as taxis in many
cities. It should be noted that fixed-route taxis
combine the features of taxis and bus transport. Studies
show that a large number of such taxis have a negative impact on the accident
rate and the environment [7]. There are
experiences using motorcycles [8] and bicycles [9] as
taxis. In Athens, taxi-sharing services
are widely offered to passengers [10]. The essence of such a service is that a taxi serves
several customers in one trip.
Researches show taxi services have many problems,
including safety issues. Often, taxi drivers break the rules to
deliver customers quickly, especially by speeding. The solution to this problem is regular training of drivers.
In addition, the driver control system can be effective [11].
Several works have been devoted
to the study of the influence of various factors on the work of taxi services. Ge et al. compared taxi trips in Shanghai and
New York [12]. The relationship between the
flow of passengers in Shanghai and land use, the number of permanent residents,
the number of car owners, and employment in the city were analyzed. Al Ali et al. commented on the taxi
service infrastructure in Dubai [13]. For comparison, the
situation with the availability of taxis in European countries was analyzed, and a comparison was made of the number of
taxis per capita. Steps with taxi service
strategy discovery were estimated.
Taxi trajectory analysis shows that there is a direct
relationship between mobility and urban structures in cities [14]. A
study in Lisbon based on GPS taxi tracking examined urban mobility by
identifying pick-up and drop-off locations for passengers [15]. It
also allows for predicting the future of taxis.
Conducting surveys allows for identifying the attitude
and satisfaction of users and even service providers in the organization of
specific activities (including taxi services). Mensah and Ankomah conducted a
study on taxi services and passenger satisfaction in areas of Accra where metro
stations are located [16]. As a result of the studies conducted during
the month, a factor analysis of the material value, reliability, trust, empathy
and reactivity of indicators was carried out. Reliability
and empathy scores were lower than the other indicators.
The study by Ziyad et al. is
also based on a survey, and the results of the survey were processed and analyzed using the SPSS program [17]. Furthermore, a
study by Pandya et al. examined the impact of private companies on the taxi
market, considering factors of interest to customers [18]. The theoretical foundations of dependent
and independent indicators have been developed. The survey results were
processed using the SPSS and Minitab programs to test the null and alternative
hypotheses.
The development and rapid spread of digital technologies
have led to changes in the taxi industry, as well as in various service
sectors. Customer satisfaction with taxi orders depends
on socio-economic and service factors [19]. Currently,
taxi services are ordered through mobile devices, choosing a payment method and
a car class. The information system determines the
location of the taxi and directs the nearest one to the client. Recently,
alternative services to taxi services have become common. In some countries,
the expansion of car-sharing services in major cities has slightly reduced the
demand for taxis [20]. In Malaysia, the results of a survey conducted to study
the attitude of drivers to the use of mobile applications for ordering a taxi
were analyzed [21]. The target group in the survey was taxi
drivers. The survey studied the demographic indicators
of respondents and the level of use of smartphones. A
study of mobile app usage in Surabaya, Sidoarjo and Gresik found that the best three essentials in
online mobile apps are route guidance, interaction and content quality [22]. At the same time, most customer
dissatisfaction was caused by the quality of service and connection. A survey in Sri Lanka
examining mobile app-based taxi bookings found comfort and service levels to be
the key indicator of passenger satisfaction [23].
Mezuláník et al. compared Uber, Taxify,
Liftago and standard taxi services for driver,
vehicle and ride characteristics [24]. The study examined
the characteristics of the taxi service in the Czech cities of Prague and
Ostrava.
Hayder analyzed the factors that
influence the level of customer satisfaction with the services provided by
online taxi companies [25]. Reliability, price,
quality of service and comfort are taken as independent factors, and passenger
satisfaction is a dependent factor. The results of a survey of 100
respondents in Dhaka were analyzed using the SPSS
program and the 5-point Likert scale. The author found that dependent and
independent factors have a significant impact on each other. The correlation analysis showed that among the independent
factors, the price has the most influence on passenger satisfaction with the
service.
The stakeholders in the taxi market are the
administrative management, operating companies, drivers and consumers [26]. When
setting prices for taxi services in this system, it can be advantageous to
increase the wages of drivers, order by phone, link tariffs to fuel prices, and
introduce new opportunities to improve passenger satisfaction. Research by Deriugin et al. showed that consumer preferences are
economical (fare), performance (speed), ergonomics (comfort), and safety
requirements [27].
In many countries of the world, restrictions are being
introduced on the entry of taxis into the market. However,
the taxi market in many cities is not well-regulated. This is mainly due to
the protection of the income of taxi drivers. However, many reforms have led to
a further decline in the income of taxi drivers. In
some cities, taxi licences are exceedingly expensive [28].
The main reasons for state intervention in the taxi
market are safety, traffic congestion, market problems and the image of the
city [29]. There are three main types of taxi market
regulation: quantitative, qualitative and economic. Quantitative regulation of the
taxi market is based on limiting the number of licences issued. While qualitative regulation is based on restrictions by
imposing requirements on taxi cars and taxi drivers in their respective
activities. And economic regulation is associated
with the application of tariffs. Recently, in
European countries, there has been a transition from quantitative regulation to
qualitative regulation.
Effective qualitative regulation requires sufficient monitoring of
resources and the means to implement sanctions.
3. METHODOLOGY
This article is aimed at analyzing the organization and
regulation of taxi services in Baku city. The source of the analysis is the results of a survey
among passengers and taxi drivers. The survey was
conducted in two stages to study the attitude of passengers and drivers towards
the organization of services in the Baku taxi market. In the first stage, the attitude of passengers to issues
of timeliness of service, payment method, frequency of access to services,
etc., was revealed. The questionnaire included 40 questions. The survey
involved 506 residents of Baku city. In the second stage, a survey was conducted
among taxi drivers. A total of 475 drivers answered questions related to the
mode of operation in a taxi. The
drivers participating in the survey included drivers of a taxi fleet, drivers
working with aggregators, and drivers working independently, both on a call and
specific routes. Both stages of the survey were conducted openly,
maintaining the anonymity of the respondents. It was decided to choose a
diagnostic survey method that allows respondents to comment on issues related
to taxi services.
4. ANALYSIS OF PASSENGER ATTITUDE
TO THE ORGANIZATION OF TAXI SERVICES
The questions
included in the passenger survey questionnaires are mainly divided into three
parts: questions about the level (compared to other modes of transport) and the
reason for using taxis; questions related to orders using mobile applications;
and questions about the quality of taxi service. Table
1 shows the distribution of surveys conducted among the population of Baku city
by gender and age groups.
Tab. 1
Distribution of
questionnaires by region, gender and age groups
|
Distribution |
Number |
Percentage |
|
By gender groups |
||
|
Male |
344 |
68 |
|
Female |
162 |
32 |
|
By age groups |
||
|
18-25 |
111 |
22 |
|
26-35 |
152 |
30 |
|
36-45 |
116 |
23 |
|
46-55 |
61 |
11 |
|
56-65 |
66 |
14 |
|
a) |
b) |
|
|
|
Fig.1.
Distribution of movements using transport:
a) for gender groups, b) for age groups
As seen in
Figure 1a, 85% of the population living in the regions of Baku city use regular
bus routes, 69% - metro, 62% - taxis, 28% - fixed-route taxis, and 6% - trains. Men are more
likely (37%) than women (11%) to use fixed-route taxis. Taxi services are more (70%) used by
passengers in the age group of 26-35 years. Only 46% of passengers in the 56-65
age group use taxi services.
Also, among respondents, 27% noted that they use a taxi
several times a month, and 33% - several times a week (Figure
2). While 9% of respondents use taxi services
several times a day, 5% once a day. Noticeably, the number of people using a taxi at least
once a day is 14% of the total number of respondents. Furthermore,
35% of men and 29% of women use taxi services a few times a week. Taxi services are used several
times a month by 31% of women and 26% of men.
Fig. 2. Frequency of using
taxi services
Fig. 3. Distribution of reasons why passengers prefer using a taxi
Currently, when
choosing among the proposed taxi services, 69% of respondents consider the
price of the service as the decisive factor, 35% - the timeliness of the
service, 23% - the condition of the car, 22% - the presence of a mobile
application, 14% - the availability of an online order. For the
other respondents, 6% consider
the image of the company offering the service, 2% the professionalism of
the drivers, and 1% the convenience of the trip. Most women (75%)
choose a taxi based on the cost of the trip.
As shown in Figure 4, 66% of respondents said that the volume of taxi
services was adequate during the COVID-19 pandemic, and only 34% thought that
they were not enough. Most women, 70%, and 64% of men
consider the volume of taxi services adequate for the COVID-19 pandemic
period. As for age groups, people aged 18-25 (77%) are most satisfied with taxi
services during the pandemic.
Fig. 4. Attitudes towards
the adequacy of taxi services during the COVID-19 pandemic
Of the respondents surveyed, 65% prefer a mobile
application to order a taxi, and 26% choose to order a taxi via a call centre (Figure 5). Only 9% of respondents do not care how they
call a taxi, and they order a taxi directly. Passengers in the age groups 18-25
(85%) and 36-45 (70%) more than others prefer to order a taxi through a mobile
application. On the other hand, respondents in the age
groups 46-55 (43%) and 56-65 (49%) prefer to order a taxi through a call
centre. The proportion of men who choose taxi services because of the
possibility of ordering online is higher (17%) than women (10%).
Fig. 5. Taxi
calling method distribution
When asked; What form of payment
do you prefer for taxi services? Most respondents (94%) answered in cash. Only 12% of respondents in the 18-25 age group prefer to
pay with a bank card. Observably, despite the rather
high popularity of mobile applications for ordering a taxi, non-cash payments
are not yet common.
In Baku, passengers are offered economy, comfort and
business class taxis. Most economy class taxi cars are Toyota Prius. For 40% of
respondents, the brand of the taxi car does not matter. However, the survey showed
that 33% of respondents consider it expedient to use Mercedes cars, 13% Toyota
and 13% BMW as economy class taxis.
However, 69% of
respondents are unsatisfied with the level of professionalism of taxi drivers,
and 53% - with their behaviour towards passengers.
Among taxi companies, Bolt has a clear
advantage. Thus, 67% of respondents stated that they use Bolt services (Figure 6). While 12% of
passengers use Maxim taxi services, 9% use Uber services, and 5% use Salam
services. In Baku, the use of private cars as a
taxi is allowed. Subsequently, 54% of respondents
rated the use of private cars as taxis as well, and 8% as very good. For
29% of respondents, this is indifferent.
Fig. 6. Distribution
of taxi orders between companies
Notably, the number of taxi users does not lag behind the
number of bus and metro users. This can be mainly
explained by the lack of competitiveness of public transport, which does not
offer quality services, and the cheapness of taxi rides. Another reason for the increase in taxi uses in Baku is
the lack of coverage and accessibility to the public transport system. In
addition, long inter-zone travel by public transport also increases the number
of calls to taxi services. The metro, with 26 stations and the bus network,
with 173 routes, do not adequately cover all areas of the city. Hence, it is no coincidence that more than 70% of those surveyed
consider it necessary to use an alternative type of public transport in Baku
(BRT, LRT, etc.). The bus fare in Baku is AZN 0.3 (USD 0.18). However, 47% of passengers are generally dissatisfied with
bus transport. At
the same time, it should be noted that 33% of respondents called the taxi a
dangerous mode of transport.
5. ANALYSIS OF TAXI DRIVERS’
WORKING CONDITIONS
Surveys were conducted in taxi companies and taxi ranks
(stations) to study the attitude of taxi drivers towards the taxi market
situation. The questions
included in the questionnaires for the surveys conducted among drivers were
aimed at determining the performance indicators of the drivers themselves, as
well as their attitude to their current working conditions.
Table 2 shows the main personal
and performance indicators of the surveyed drivers. As shown
from the table, a fairly large proportion of drivers (42.5%) have only 0-3
years of taxi experience. Almost half of the drivers are in the 25-40 age
group. And 65% of drivers have secondary education.
Tab. 2
Personal and performance
indicators of drivers
|
Indicators |
Percentage |
|
Driving
experience |
|
|
0-3 years |
42.5 |
|
3-5 years |
17.4 |
|
3-5 years |
16.7 |
|
More than 10
years |
23.9 |
|
Age of drivers |
|
|
18-25 years |
8.6 |
|
25-40 years |
47.2 |
|
40-55 years |
26.4 |
|
Over 55 years old |
17.7 |
|
Education |
|
|
Secondary |
65 |
|
Bachelor's
degree |
25 |
|
Master's degree |
3 |
|
College
graduates |
7 |
|
Hours
of work on the line |
|
|
06:00-14:00 |
24.3 |
|
14:00-22:00 |
19.8 |
|
22:00-06:00 |
7 |
|
From morning to
evening |
23.7 |
|
Not matter |
41.5 |
|
Served
passengers per day |
|
|
1-3 |
18 |
|
4-5 |
24 |
|
6-10 |
29 |
|
11-15 |
19 |
|
More than 15 |
10 |
From the analysis, 30.7% of drivers work with their own
car, 39.3% work
for rent with a taxi company, 25% with their own car and take
orders individually, 4% with their own car and take orders individually, 1%
serve passengers as a taxi along the route.
Most drivers, 68.7%, stated that they use an
identification number to work in a taxi, and 38.9% use a special identification
badge issued by the Baku Transport Agency. However,
29.3% of drivers do not have the appropriate taxi license.
Out of the taxi drivers surveyed, 39.7% work with Bolt. Then 26.6% of drivers do not cooperate with any company. While 23.5% of drivers work with Uber, 23.3% with 189
taxi, 18.8% with Maxim (2111), 12.1% with Economy (9111), 11.7% with Salam
(9933), 6.1% c 8555, 3% c 5000 and so on (Figure 7).
Fig. 7.
Distribution of cooperation between taxi drivers and taxi companies
However, 40.1% of taxi drivers do not consider the
terms of the cooperation of any company beneficial. While 25.3% of drivers deem 189 taxi conditions
favourable, and 12.8% Bolt (Figure 8).
Fig. 8. Distribution of the attitude of taxi drivers about the benefits of
cooperation with taxi companies
Most drivers (65%) believe that
intermediary companies sending customer orders to drivers should change the
conditions of mediation.
If training for taxi drivers is organized in the future,
12% of drivers would like to take a course on traffic rules, 8% - rules of
conduct with passengers, 5% - a first aid course, and 3% - additional training
to generate a large income. Few drivers, 1%, said they
want to participate in training on getting to know the city and knowledge of
the language. However, most taxi drivers, 56%, do
not want to participate in driver education training.
The results of the survey show
that 64% of drivers have had a medical examination within the last 6 months,
16% - 6-12 months ago, 5% - 12-36 months ago, and 15% - more than 36 months ago.
Also, 38% of the surveyed drivers violated the rules up
to 3 times, 5% 3-5 times, 3% 5-10 times and 3% more than 10 times in the last 1
month. Majorly, 52% of taxi drivers said they did
not violate traffic rules.
An
analysis of the organization of the taxi service in Baku city revealed that a
large number of taxi cars operate in the taxi market without proper permits,
leading to tax evasion. In
addition, most fixed-route taxis are not registered as taxis. Taxi drivers do
not undergo a daily medical examination. For drivers involved in violations,
there is no mechanism of restriction. There is no certification system for taxi drivers or mechanism to control the insurance of taxi
cars and their passengers. It should be noted that according to the “State programme for ensuring road safety in the Republic of Azerbaijan
for 2019-2023” [30], there is a plan to improve the organization
of work and improve the skills of taxi drivers.
6. DISCUSSION
The
current organization of the taxi market in Baku city has some aforementioned elements, leading to certain problems such as
tax evasion (29.3%
of drivers do not have any documents for taxi driving), the use of substandard vehicles as
taxis, and passenger safety. There
is no mechanism for monitoring daily medical examinations. Taxi drivers are not required to have a certificate for
the relevant activity. There is no mechanism to control the
insurance of passengers and liability insurance of car owners.
Although the level of use of taxi services is high, only 22% of
passengers are satisfied with taxi services. Passengers are generally satisfied with the prices of
the services. However, they are dissatisfied with the
level of professionalism and the attitude of drivers to passengers. In addition, a large number of consumers consider taxi
rides dangerous.
Drivers are unhappy with the pricing policies of taxi
companies. However,
it should be stated that prices are dictated by competition in the market.
Also, it should be
noted that economic regulation of the taxi market can be carried out
simultaneously with both quantitative and qualitative regulation. Taxi services play a pivotal role in the mobility of a
population. Limiting the number of taxi licences (quantitative regulation) in Baku city or fares (economic
regulation) could worsen population mobility problems. The
application of economic regulation (mainly limiting minimum fares) can only be
considered after the required measures to ensure mobility in the city of Baku
(improvement of the public transport route network, construction of cycle
paths) are taken. According to the State programme for ensuring road safety in the Republic of
Azerbaijan for 2019-2023, there is a proposition to develop a mobility plan for
the cities of Azerbaijan, including the city of Baku. However, at this
stage, it is advisable to control tax payments.
An analysis of the organization of the taxi service in
Baku shows that there is a need for improving qualitative
regulation of this activity (control over the certification and medical
examination of the drivers, the technical condition of vehicles, passenger
insurance and driver liability insurance). Considering the opportunities of information
technology and the massive transition to digital orders, this regulation is
proposed to be carried out parallel with the control of tax payments on a
single digital platform using the appropriate technical means and software. Such
regulation can improve the quality of passenger service by ensuring that taxi
drivers work by the rules.
CONCLUSION
In recent years, as in several cities around
the world, the number of taxi orders through mobile applications and call
centres has increased in Baku. Many car owners and drivers work with taxi companies
personally. Consequently, this has led to certain changes in the taxi
market. These new conditions have led to the emergence of specific conditions
in the market of taxi services in the city of Baku. Based on this study, the
attitude of both drivers and passengers towards the current situation indicates
the need to improve the organization and regulation of taxi activities.
Most calls to taxis are mainly due to the low prices
of services and quality problems in the types of urban public transport. Analyses show that passenger
satisfaction with taxi services is not high.
Until the
development of a mobility plan in Baku city (improvement of public transport,
construction of cycle paths, etc.), full economic regulation of taxi services
is not advisable. Nevertheless, at this stage, it is
important to control tax payments. To improve the quality of passenger service, it is
advisable to introduce qualitative regulation. It will cover control over the certification and
medical examination of the drivers, the technical condition of vehicles,
passenger insurance and driver liability insurance. Therefore, it is
proposed to create a single digital platform through which control of the
listed actions will be possible.
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Transport is licensed under a Creative Commons Attribution 4.0
International License
[1] Azerbaijan Technical University, Baku, H. Javid 25, Azerbaijan. Email: rector@aztu.edu.az.
ORCID: https://orcid.org/0000-0002-7212-2790
[2] Institute of Logistics and Transport,
Azerbaijan Technical University, Baku, H. Javid 25,
Azerbaijan.
Email: fuad.dashdamirov@aztu.edu.az.
ORCID: https://orcid.org/0000-0003-3781-3542
[3] Institute of Logistics and Transport,
Azerbaijan Technical University, Baku, H. Javid 25,
Azerbaijan.
Email: azer.gurbanov @aztu.edu.az. ORCID: https:// 0000-0001-7804-4781
[4] Center
for University-İndustry Collaboration and Lifelong Learning, Azerbaijan Technical University,
Baku, H. Javid 25, Azerbaijan. Email: aynura.ismayilova @aztu.edu.az. ORCID: https://orcid.org/0000-0003-4372-6066