Concerns Mount Over Government’s Planned Taxi Fleet Amid Industry Backlash

The government’s plan to launch a state-run taxi fleet has drawn strong criticism from private taxi operators, with industry leaders warning that over 10,000 people could be negatively affected.

In a statement released yesterday, Taviyani, the company behind the widely used Avas Ride taxi application, accused the Ministry of Transport and Civil Aviation of disregarding the concerns of taxi drivers. The company stated that the Ministry had previously assured them that no such initiative was being considered, citing a Right to Information (RTI) response from 11 December 2024, which denied any plans for a government-operated taxi service.

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However, despite these assurances, on 12 February, the Ministry signed an agreement with Maldives Transport and Construction Company (MTCC) to introduce an environmentally friendly taxi fleet. Taviyani described this move as a direct contradiction to previous commitments made by the Ministry, both in writing and in person. The company also claimed that the Ministry had earlier pledged not to introduce such a service without conducting the necessary discussions or research.

Taviyani warned that the introduction of a state taxi fleet would impact not only full-time taxi drivers and taxi centres but also part-time drivers, individuals who rent out vehicles as a secondary source of income, and small businesses connected to the industry.

The opposition Maldives Democratic Party (MDP) has also voiced strong objections to the government’s involvement in the taxi sector. South Galolhu MP Meekail Ahmed Nasym criticised the decision, arguing that the state should focus on regulating the industry rather than competing with small and medium enterprises (SMEs).

“The government does not have to enter the spaces of small and medium enterprises and disrupt it. The government has to regulate it,” Meekail said during the MV+ Mashvaraa discussion on X Spaces, where the Presidential Address was a key topic.

With increasing pressure from private operators and opposition politicians, the government’s decision to move forward with the taxi fleet is likely to remain a contentious issue in the coming months.

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