Deregulated Taxi Driving in Sweden

wrong, there were still some aspects of usury that started to interest the authorities. After spending thousand of hours following specific cabs that were among the most reported by passengers for profiteering, the investigations were shut down permanently. The reason? To pinpoint specific taxi drivers was too costly and nothing could be done about the problem as the deregulation was a fact and the market was free!

COLLECTIVE PUNISHMENT
So how about the current situation, seven and a half years after the big bang? Well, in Stockholm, which has been one of the most turbulent areas since the industry was deregulated, there are today still over 2000 cabs which do not belong to any dispatch and that still charge their own prices.
   Then there are another 3000 cabs, divided in 21 different taxi companies, in which Taxi Stockholm with its' 1600 cabs is still the biggest. This means there are still 5000 taxis in Sweden's capital; a city with a population of 1,4 million, most of them not used to using such a wonderful way of transportation as the taxi is, but still take the bus.
   As the competitive situation and tight economical frames still are very much of a reality for most of the drivers, more than a few feel forced to hide some money from taxation to survive. "Thank God for the fixed prices", some of them say, meaning that a fare that doesn't show on the meter and a passenger that doesn't require a receipt, saves the whole day.
   Unfortunately, many of the drivers are therefore disrespected by society and pinpointed as dishonest and corrupt. Some of the spokesmen for the City Council even talk about "some kind of collective punishment" to get hold of the situation.

 

   But is the Swedish deregulation solely the taxi industry's problem. Or is it something that concerns the whole of society, even though most of the authorities' representatives choose to shut their eyes?
   Well, my own personal opinion is that this is a major problem that ought to be solved by the authorities as the deregulation was forced onto the drivers - against their will.
   Controversially, an Order was made in October 1997 by the City Council which determined that only the three biggest taxi companies - including Taxi Stockholm - would be allowed to pick up at Stockholm Central train station following complaints against the ‘independent’ taxi drivers overcharging. Unfortunately, the situation led to rioting by the independent drivers. The police became involved and the situation ended with the independents having a sit-down strike before being carted off. The station now employs smartly dressed inspectors - known as yellow jackets - to ensure that only the correct taxi companies pick up at the station.
   After speaking with cabbies around Stockholm during the last ten years, I can tell you Londoners on Dial a Cab that 95 per cent of your colleagues over here hate the present deregulated situation and most certainly do not want anything more than the possibility to survive in their occupation. Unfortunately, the City Council lost a grip on the taxi industry years ago and therefore - in pure panic - have forced new techniques onto the taxi owners in an attempt to stop the never ending tax fraud and the accelerated overpricing.   
   Just during the last four or five years, there have been over ten major updates of the computerised taximeters, mostly by demanding that the owners install new software into the cabs. This has, unfortunately, put

sweden5.jpg (5287 bytes)

Independent driver held down by police

the taxi owners into even worse economic stress as they have been forced to borrow even more money to pay for the unwanted goods.
   As many taxi owners have now given up their jobs and sent their permits back to the City Council, there are always newcomers who want to try to make some fast money. By establishing a small company, which is easy and takes a week, they then run their business without any dispatch services or book-keeping for the permitted 18 months and then put the company into bankruptcy. The money they have made, without paying any taxes or social welfare, is placed abroad on an account that isn't reachable for the taxation authorities.
   Is there then any salvation to the honest core of taxi drivers in Sweden? As it looks right now - not really. As the authorities will not admit that they made a terrible mistake when they chose to deregulate the industry at the beginning of an economic recession, there will only be survivors among those who cheat and overprice. The rest - the majority - are and will continue to be losers as long as nobody take their part when discussing the problems with the politicians.
   I feel sorry for the honest and hard working Swedish taxi driver who has to live this kind of life. Or as a spokesman at the City Council, who perhaps understand the problems better than most, said: "I think that a re-regulation is the only way to solve this tragic mess that has been part of each taxi drivers life for more than seven years".

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