Information on the taxi sector
The taxi sector is arguably the most talked about transport sector in Finland. That status has been maintained by the Act on Transport Services that entered into force on 1 July 2018, transferring the taxi sector from quantity regulation to a liberal market model. Actors in the sector are mainly operating in the Finnish market, ensuring that the Finnish society can function even in areas where other services are no longer available. Taxis are an integral part in the chain of mobility. As a flexible form of service, they support other forms of public transport and allow moving when using private cars are not an option.
Total revenues of the taxi business are about EUR 1.1 billion
Total revenues of the taxi business are about EUR 1.1 billion, of which customers paid for by the public sector make up about 40%, private consumers about 30% and business customers about 30%.
The biggest private sector customers of the taxi business are municipalities where the school transports, the transports of old persons granted pursuant to Act 1301/2014 governing social welfare and the transports of severely handicapped persons granted pursuant to Act 380/1987 governing the services of handicapped persons are subjected to competitive tendering, and the services are produced by taxi entrepreneurs and passenger traffic entrepreneurs. Another major customer is Kela that refunds the costs of taxi transport to and from medical care when other forms of transport cannot be used.
Most actors in the sector are small entrepreneurs
There are approximately 10,000 holders of traffic licences in the field. (The exact number advised by Traficom on 30 June 2019 was 10,716.) Some 12,500 vehicles are registered for use as taxis. Entrepreneurship in the taxi business requires a licence, and the licence entitles its holder to operate as a taxi entrepreneur everywhere in Mainland Finland. The entrepreneur can freely decide on the number of vehicles deployed.
In addition to the holders of taxi licences, 77 entrepreneurs in the passenger or goods transport businesses have also registered as taxi service businesses. (Traficom 31 July 2019)
Most of the taxi traffic licences have been granted to private persons, i.e., the operations take place under a trade name.
The sector employs tens of thousands of persons as drivers, taxi order service operatives and in various other business positions.