RIGA - In the last few years, some Riga taxi drivers have earned a dubious reputation for overcharging customers. But in recent weeks, the cab industry has suffered incidents that make fare rip-offs seem like small change.
On the night of Sept. 3 near Old Riga, three taxis from the cab operator Rigas Transporta Sabiedriba (RTS) blocked off a car run by a rival firm, Baltic Taxi, and slashed a tire. The next night things got heavier, with Baltic Taxi cars shot at on two occasions. Police have started criminal investigations into the events.
No one was hurt in the incidents, but questions have been raised as to whether the Latvian capital is experiencing a revival of violence between taxi firms last seen in the wild 1990's. The latest outbursts come as taxi drivers struggle for dwindling business in the midst of the economic crisis. Baltic Taxi is a new, high profile business launched on August 31 in conjunction with Latvia's national airline, Air Baltic. It will initially operate with 50 cars, but plans to expand the network to 250.
RTS board member Sergejs Sidorko said that while he condemns any illegal actions by his company's employees, Baltic Taxi had provoked the situation with its drivers picking up passengers out of turn at ranks.
Baltic Taxi is 51 percent owned by Air Baltic President Bertolt Flick and 49 percent by entrepreneur and former Latvian Privatization Agency head Janis Naglis. Flick and Naglis claim their entry into the taxi business is driven by the failure of the Riga city authorities to stop fraud against tourists.
"This is not an ordinary business project," said Flick. "It is our civic responsibility, because it is time for each of us to start looking after the environment we live in."
As its aircraft land in Riga, Air Baltic routinely broadcasts warnings to passengers not to use certain taxi companies at the airport due to the risk of fraud. Following the recent violent incidents, Baltic Taxi announced the establishment of a Web site, www.badtaxi.lv, where customers can report negative experiences. Over 30 complaints have been posted on the site to date, including a number against Baltic Taxi itself.
"We all know those who cheat their customers, but every taxi passenger has the right to polite and safe service, decent quality and clearly understandable charges" said a statement issued by Baltic Taxi.
The Riga City Council is considering a range of proposals to clean up the taxi industry. These include setting quotas for taxi numbers, toughening licensing requirements and giving more powers to the police and supervisory bodies. Deputy Mayor Ainars Slesers said that he would like to see the 80 private taxi companies currently on the streets reduced to five or ten operators.
Some members of the taxi industry have criticized Slesers' proposals as high-handed and unfair. Iveta Silionova, chair person of the Latvian Taxi Company Employers' Association said she was not surprised by the recent violence as conflicts between rival firms are common. While Silionova welcomed plans to reduce the number of taxi companies, she urged that this be done in a reasonable way that would ensure fair competition, rather than serving the interests of Baltic Taxi. She also said that her organization had sent a letter to Riga Mayor Nils Usakovs expressing dissatisfaction with the regulation of the city's taxi business.
"We once again see a situation where Council representatives are blatantly ignoring the interests and views of taxi companies operating in the city while lobbying the interests of one company 's Baltic Taxi - in the process breaching regulations on competition and taxi services" states the letter.
