Cheaper services and a large investment are on the cards for the company which holds thirty percent of the capital’s taxi market.
As Darko Bicak/Poslovni Dnevnik writes on the 21st of May, 2018, Croatian taxi companies possess great knowledge, a good brand and a wealth of valuable experience that provides them with a very good position for expansion in the countries of the wider region, according to Eko Taxi’s director.
The latest official data shows that over the past ten years, the number of taxi drivers in Croatia has increased foirteen times, and the entry into force of the new Road Traffic Act this week could see that figure double.
The current estimates are that around 2,500 taxis operate across the country. Eko Taxi, of the Ecolabel brand, was one of the first to appear in Croatia’s more liberalised taxi transport market back in 2011, first showing up in Zagreb, and then in Zaprešić and then on the coast in Vodice, it boasts more than 150 vehicles and 250 drivers, and is now announcing their expansion throughout Croatia, doubling ther fleet and their number of drivers by the end of the year. Currently, as estimates stand, Eko Taxi hold a significant thirty percent of the taxi market in Zagreb, and in the forthcoming period, they expect large-scale restructuring within the sector and the raising of that share, as well as further expansion.
An investment of fifteen million kuna during 2018 has been announced, money which will see the expansion of the fleet and the franchise business. Additionally, the shuttle service that is currently serving Zadar Airport will be expanded further out into the area. Mislav Munivrana, director of Eko Taxi, pointed out that he generally welcomes the adoption of a new law that could better regulate things in the long run, but he fears that in the beginning, there may be some chaos due to many inaccuracies and expected misinterpretations of the legal regulations.
“The law was adopted by an urgent procedure, there was only one reading in the Parliament and eight days after that, it came into force. It’s not necessary to make important business decisions based on public hearings and announcements about legislation that may or may not have to be finally recognised. I think they should leave a longer period before enforcing it, best by the end of the year, to enable everyone to properly prepare for it. The law encourages us to invest and expand further, all of which requires significant capital investment, but that takes time,” he pointed out.
He added that Eko Taxi initially advocated for the liberalisation and the technological modernisation of the sector and the regulatory development of the taxi business. One of the objections to the new law is that, he believes, there is too little or no limit to regulate the market, which will initially be a problem for serious players on the market.
“For any business you want to seriously enter into today, you’ve got to allocate a minimum of ten thousand euros. In this segment, according to the new law, you have to have enough to have a car. A car is something most people have and there’s no need for anybody to invest anything to have a go at this job, and can thus, this could cause some destabilisation and market disruption,” stated Mislav.
In reference to the competition and Uber, Mislav pointed out that one of the main guidelines referred to in the adoption of a new law would be to provide a cheaper taxi service.
”We’re not raising our prices, we’re thinking of lowering them even more,” he added.
He noted that the Croatian taxi service market operates at a high level, especially as far as Zagreb is concerned, which, in recent years, has almost become a “case study” for the studying of a successful model of taxi service in terms of good quality, liberalisation and the application of technology, for both European and international frameworks. Owing to that fact, he said, Croatian taxi companies have great knowledge, a good brand and valuable experience that provides them with a very good position for expansion into countries in the wider region.
Click here for the original article by Darko Bicak for Poslovni Dnevnik
