Azerbaijan.US
Taxi drivers operating between Baku and nearby cities say administrative zoning rules are quietly reshaping Azerbaijan’s ride-hailing market – often at their expense, and sometimes at the expense of passengers as well.
Under current regulations, taxi permits and identification cards are issued based on a specific administrative territory. In practice, this means a driver registered in one area may legally carry passengers only within that designated zone. While intercity trips are allowed, drivers frequently report that once a passenger is dropped off outside their registered area, ride-hailing apps stop assigning new orders.
The result is a growing number of one-way trips.
Drivers who take passengers from Baku to cities like Sumgayit or regional districts often return without a fare. In many cases, the system either places them in passive mode or simply does not offer new rides. According to drivers, this leads to additional fuel costs, lost time, and lower daily earnings.
Industry estimates suggest that a single empty return trip can cost a driver 5–7 manats in fuel alone, not including the loss of one to one and a half hours of working time. Over the course of a week, those losses accumulate – particularly for drivers whose income depends on frequent intercity travel.
Transportation expert Aslan Asadov says the original purpose of zoning restrictions was market regulation and service quality control. However, he argues that the system no longer reflects real mobility patterns.
“Passenger demand is not static,” Asadov notes. “In a large and dynamic city like Baku, people are constantly moving between districts and nearby regions. Rigid administrative boundaries do not align with how transport demand actually works.”
According to him, strict zoning reduces efficiency, encourages drivers to refuse longer trips, and ultimately affects passenger satisfaction – especially during peak hours or on routes connecting the capital with surrounding areas.
Regulators, however, point to the legal framework. In a response to media inquiries, the Azerbaijan Land Transport Agency stated that, under the Law on Automobile Transport, taxi services are provided on a non-scheduled basis strictly within the territorial limits specified in the permit. Drivers operating outside their authorized zones face fines of up to 50 manats.
For many drivers, that fine is equivalent to an entire day’s earnings.
The unintended consequence is a market caught between regulation and reality. Drivers must choose between risking penalties or absorbing losses from empty return trips. Passengers, in turn, may face longer wait times or higher refusal rates for intercity rides.
As Azerbaijan continues to modernize its urban mobility and digital transport services, experts argue that zoning rules may need reassessment – not to eliminate oversight, but to better reflect actual travel flows and economic incentives.
For now, the system remains unchanged, and one-way trips are becoming a routine cost of doing business in Azerbaijan’s taxi market.
