The taxi company “Riga Taxi” has the slogan of the company written on their own website : ” Riga Taxi – the art of travel! “. I have this to say about how this “art of travel” comes to life for the company’s customers.

This morning, pl. At 6 in the morning, my girlfriend went on a business trip and for convenience, Riga Taxi was called to take her girlfriend to the airport. From the house to the airport is 10km, if you calculate the route along the largest / straightest streets. If you look at the service of the service price list when boarding a taxi paid 1.50Ls but 1km- 0.50Ls having taking into account the distance to the destination should build Ls 6:50. Then, the amount for which the taxi driver wrote a check to my girl was 10 Ls. By the way, the same amount was regulated on the taxi counter.

How the hell could this happen? The official explanation can only be one- a taxi drove 17km, instead of the previously calculated 10km. I wouldn’t call it the “art of travel” at all, if only by “art” taxi drivers and the company understands “art” to take twice as long routes.

And if about the route, then, although it was not quite straight, it was not 2x longer, so if the meter shows 10 Ls, then it is clear that first the meter itself turns there or 2x faster. Secondly, also taking into account the fact that the taxi driver offered to write any amount on the company’s transaction check before disembarking , then it seems quite realistic that within the company such activities take place with the company’s own blessing.

BUSINESS MODEL According to my calculations, I had to pay 6.50 Ls for the trip, but the taxi driver charged 10 Ls. This means that 35% more was paid for the trip than indicated in the price list, so I was wondering how much a taxi company can earn in this.

I will not go into employee salaries, inventory depreciation and other administrative expenses of the company, but I will try to calculate some approximate income.

So, mostly the company’s fleet is still made up of red Renault Scenic, which could be worth around 4000Ls and have 1.9D engines that spend around 5L per 100km. Taking into account that the price of diesel fuel is currently 70 santims, it turns out that one kilometer costs 3.5 santims (5 * 0.7 / 100). So, according to the price list, the profit per kilometer is 46.5 santims.

If you look at it very superficially, then such a Renault can be recouped by rolling ~ 8600km (4000 / 0.465). This is according to the official 0.50 Ls / 1km pricing, but if we also look at another 35% of the barking, then it would turn out that you can earn such a car by driving ~ 6300 km, which such a hardened taxi driver could do in two weeks. There is not even a change of oils and no other maintenance for the car, so I do not look at those expenses here at all.

Of course, math is primitive, but even if you divide the whole business by 2 or 3, you still get a thorough cabbage, or at least a relative return on expenses. I did not even add boarding fees, which could increase profits by another 15-20%, taking the average length of passenger journeys.

How profitable is the taxi business then? I get quite profitable, just think about what expense it is.

Corrected: in the comments of the article, the chacher drew attention to the fact that renault time (?) Is a car of another taxi company, so the calculations described do not really work, but 10 Ls is still unreasonably imposed, as far as riga taxi price is 0.5 Ls anyway.

OTHER COMPANIES
I rarely use taxi services, so I can’t judge how everyone does it. The last time we went to Greece, we seem to have called the ALVIKSA taxi driver. Its driver also chose a longer route (from Purvciems to the airport, he drove over the island bridge, not a cable car, where he would have been about 2 km closer), so that probably Riga Taxi is not the only one who is snuggling in this. It should be added that at that time, with all the fact that the distance was almost twice as far, we paid less – 8 Ls.

IN CONCLUSION

Rīga Taxi takes care of every customer and offers to use the latest technologies in the field of taxi services. It is important for us that after each trip, the customer has a desire to reuse our company’s services.

– Thank you no. It is not possible to create a repeat desire in this way.

Although I did not reveal America to such taxi drivers, I am damn annoyed by the fact that at my expense these types of companies win, not only by providing expensive services, but also by brutally mocking their customers, without being ashamed to compliment themselves. The fact that entrepreneurs want to make money is the foundation of business. Human fraud, on the other hand, is an immoral and criminal measure.

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