Latvia, a country in the Baltic region of northern Europe, is making ridesharing history. But, in a very, very bad way. Here’s the scoop.
Rideshare with leased cars a big no-no in Latvia
Latvia is making history as the only country in the European Union that disallows ridesharing via leased cars, a practice that several other parts of the globe are following. Which part of history is Latvia in? In ancient times?
Now, popular rideshare platform in Europe, Bolt, is poking fun at this Baltic nation that prohibits hailing rides from lead vehicles.
Bolt’s president of transport and delivery, Jevgeni Kabanov recently spoke with the media to share their concerns.
They say this prohibition slows down opportunities for the drivers who want to earn a living.
“There is significant growth potential in the Baltics, including in terms of regulation,” they noted. “But one of the biggest challenges in Latvia is the ban on using leased vehicles for ridesharing or taxi services. This creates a substantial barrier for drivers wanting to join the sector,” Kabanov emphasized.
Bolt, headquartered in Estonia, is a mobile app that facilitates the hailing of quick taxi rides for convenience. It works like Uber or Lyft, where you can easily hail taxi rides, allowing you to navigate cities without resorting to traditional taxis.
Is it because of the high price and the issues with the authorities that Latvia decided to take this route?
According to Bolt, Latvia might be the only country in the European Union that implements such a blanket prohibition.
“Some countries impose different insurance requirements, and in others the leasing terms differ, but nowhere else is it outright banned,” the executive added.
Claims supported by research
These bold statements of Bolt are apparently backed by research. The media stated Bolt holds internal data, pointing out that more than 100,000 ride requests go unfulfilled each month in the Baltic area because of the lack of available drivers. Consequently, their data are also showing higher ride prices in the country, compared to neighboring countries. So, there’s a basis for the assumption, after all.
Right now, Latvian law allows passenger transport services, but only from vehicles owned or fully obtained by the operator. Leased cars are not allowed, so they are illegal in case they operate on the road.
However, the good news is that the authorities are not unanimous. Some in the Latvian government support Bolt, saying that amendments to the current regulations are needed to attract more drivers, boost service availability, and accelerate the renewal of Latvia’s vehicle fleet.
Is this a cause for concern? Definitely. Several people nowadays prefer more convenient private car-like transport over taxis. Bolt also says that opening the ground to allow leased vehicles to operate will contribute significantly to urban development.
Travelers, both local and foreign, can do several things in Latvia. They can explore the UNESCO-listed Old Town of Riga, hike in Gauja National Park, or delve into history at Sigulda. Other activities include visiting museums, exploring charming towns, and enjoying the Baltic Sea coastline. That being said, the need for efficient and convenient ridesharing services is emphasized.
Wake up, Latvia! For more ridesharing news like this, you can create your account here on the Ridesharing Forum, and go participate.