Azerbaijan.US
Taxi fares in Baku have increased noticeably in recent weeks, with passengers reporting price hikes of 10-20% compared to late last year.
Trips that previously cost around 4 manats are now often priced at 7-8 manats, according to both drivers and riders.
Taxi drivers, however, say the higher fares have not translated into better earnings.
Drivers point primarily to rising fuel costs, platform commissions, and vehicle maintenance expenses. While fuel prices have gone up only modestly in nominal terms, drivers argue that even small increases have a disproportionate impact on their margins.
“After fuel, company fees, and wear and tear on the car, almost nothing is left,” one driver said. “Sometimes after a 20-25 kilometer trip, you’re left with less than a manat. If you make one manat, you consider yourself lucky.”
According to drivers, fare adjustments made by ride-hailing platforms are often just enough to cover fuel and commissions, leaving drivers effectively working at break-even levels. Several complained that platforms prioritize competitive pricing for passengers while shifting most of the cost pressure onto drivers.
At the same time, demand appears to be weakening. Drivers say passengers have become more price-sensitive and increasingly try to negotiate fares or avoid taxis altogether.
“People are struggling financially,” another driver noted. “Many don’t want to pay even one extra manat, so they cancel rides or look for the cheapest option.”
Passenger views are more mixed. Some riders acknowledge that taxi prices have risen over the past three to four years, estimating an overall increase of up to 30%, but say they have not noticed a sharp spike specifically in recent weeks. Others argue that taxis remain relatively affordable for occasional or longer trips, especially when compared to overall inflation and rising consumer prices.
For daily commuting, many residents continue to rely on metro and public transport, reserving taxis for limited use.
Analysts say the tension reflects a broader economic squeeze: operating costs in the service sector are rising, while household purchasing power remains under pressure. As a result, taxi drivers and passengers are both feeling the strain – even as headline prices go up.
