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Under-Fire Uber Eyes Further Expansion In Hungary

2015.06.25.

Car dispatcher Uber has several hundred drivers in Hungary but if regulations are planned properly as many as 2,000 drivers could be providing services by the end of next year, the daily Népszabadság said. Since Uber entered the Hungarian market in 2014, taxi orders have been decreasing sharply in Hungary.

Uber creates jobs rather than taking them away, Zoltán Fekete, Uber’s boss in Hungary told the paper. Around 40,000 people in Hungary, largely 21-40 year-olds, use Uber’s services, he said. For rides in Budapest, the company advertises a base fare of 300 forints and a 130 forints per kilometre. Uber informs its drivers that their fares are taxable income, Fekete insisted. Under a decree in force from September 2013, the base fare for taxis operating in Budapest is set at 450 forints and 280 forints per kilometre. It also lays down strict requirements for vehicles.

Uber has raised the ire of the capital’s taxi drivers and has also come under the scrutiny of tax office NAV. Established taxi drivers have lobbied the government to issue a decree on regulating the market as quickly as possible to take into account the development of services such as Uber. Last Tuesday over 300 taxi drivers congregated in central Budapest to urge the National Assembly to adopt a taxi resolution and rules that apply equally to taxi firms and car-sharing apps.

via hungarymatters.hu and nol.hu photo: Oli Scarff – Getty Images