Taxi fares in Colombia would increase. The Ministry of Transport has already published the draft resolution that will allow local authorities to apply the methodology to define how much users will be charged.
(In context: Mintransporte proposes that they will reduce the rates of taxi races in Colombia).
The project also details when taxi drivers will be able to apply dynamic rates. The text will receive comments until July 21. After that, it could be ratified or adjusted.
When will taxi fares go up in Colombia?
William Camargo, Minister of Transportation, announced that the increase will take place as soon as the resolution project is approved. «That is a resolution that has a few times. We hope that in the next three or four weeks we will have the update,» he said in Snail Radio.
That is to say, In August 2023 the increases would come into force.
(Keep reading: Cali’s Mobility Secretary sees the increase in taxi fares ‘with very good eyes’).
Why will taxi fares go up?
Minister Camargo described the increase as «natural», since the costs assumed by public service drivers to drive through the streets are also higher.
«The cost of fuel has risen between 16 and 18 percent and the rates have not been updated,» he added.
What is the dynamic taxi rate and how is it applied in Colombia?
The dynamic rate is the value that depends on passenger demand and vehicle supply. The higher the demand, the higher the value.
For example, the majority of citizens in large capitals, such as Bogotá, travel during peak hours to go to their places of study or work. In other words, more people request taxis in that strip, which means that there are more ‘yellowish’ people on the streets.
(Read: Barranquilla taxi drivers question Mintransporte for proposal to increase rates).
«In off-peak hours the rate could have a lower value and in peak hours it would have a slightly higher value. It is a discussion that each territorial entity has to give depending on how its individual public transport system operates,» explained Minister Camargo, in RCN news.
The dynamic rate at peak hours is already implemented by applications such as Uber. According to this platform, it is activated for two reasons: first, to encourage other drivers to travel to high-demand areas; second, so that other passengers choose to wait for demand to drop and thus drivers can mobilize those who «have more eagerness.»
What other ‘incentives» could taxi drivers receive?
The Ministry of Transport seeks to encourage the offer of public service. So plan a ‘demand factor’, ie additional charges or premiums according to passenger demand.
«This factor may include specific periods of the year or situations such as: festivities, vacations, events, predetermined hours, area or sector of the jurisdiction with special characteristics, predetermined areas due to high or low congestion or suburban areas, or other situations that increase the demand for the service; as long as they are part of the mode of transport and are duly justified technically and economically (…)», see read in the draft resolution.
How will taxi fares be calculated?
(Keep reading: Bogota taxi drivers union asks to review rates for increased gasoline).
According to the draft resolution of the Ministry, To set taxi fares in each city, the following cost structure must be taken into account:
– Variable costs (fuel, lubricant, tires, maintenance, and station services).
– Fixed costs (garage, transport, taxes, insurance, mechanical technical inspection, telecommunication systems, salary and driver’s social benefits).
– Capital costs (capital recovery and profitability).
In addition, it must be in line with a methodology that includes the analysis of the vehicle fleet, the operation parameters by level of service, price research and elaboration of the cost structure and calculation of the technical rate.
You can also read:
– This is how the restriction of private cars during peak hours would work, according to Mintransporte.
– Be careful, drivers: Mintransporte will adjust standards for new tires, what will it be like?
– These are the new cars that fell the most in sales in Colombia: the downturn is strong.
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