Outcry against proposed 50% taxi hike

Taxi users have expressed dismay over a proposed 50% fare hike demanded by the Namibia Transport and Taxi Union (NTTU) last week, while taxi drivers are divided in their opinions.

Economists further warn that while taxi operators are justified in demanding an increase in fares, a steep hike could backfire and jeopardise the safety of commuters.

“Steep hikes like this always lead to huge resistance, so I think anything between 20% and 25% will be more reasonable. Taxi operators should also realise that steep hikes could reduce the demand for taxi rides that could affect their revenue,” professor of economics Omu Kakujaha-Matundu warned.

He said a fare increase was justifiable, considering there had been no increase for a number of years, while taxi drivers carried the costs of higher fuel prices.

He warned, however, that a 50% hike would be too much.

“I know of people who struggle to pay the current N$10 to go to work, and just imagine a N$5 increase. It is going to be very hard for low-income earners to face such a steep increase.”

He said such a move could force parents to send their kids to school on foot, exposing them to crime and the natural elements.

“And the same goes for the sick and expectant mothers.”

Economist Mally Likukela warned that an increase in fares would affect all taxi users, but especially the low-income earners, who already faced “multiple economic challenges”.

Kakujaha-Matundu said the 50% demand could be a negotiation tactic to ensure that the final increase met or exceeded their initial 20% demand.

“Note that 20% translates to N$2 more per ride, which is quite reasonable. Taxi users will accept that, even though it will still hit their pockets hard,” he said.



More needed

On Friday, NTTU president Werner Januarie said in a letter to transport minister John Mutorwa that the union's initial demand of a 20% fare increase had been raised to 50%.

Januarie said the increase should be incrementally implemented over the next six months.

He defended the new request by citing the high cost of operating and maintaining a taxi while earning a living wage.

Commuters say a 20% increase is acceptable, but they are balking at the 50% proposed increase.

Regular taxi user Rosalia Kavari, who spends approximately N$150 a week on taxi fares to work and back home, said a 50% increase would force her to look for alternative transport options.

“It's very steep. It would be too expensive for me; I cannot afford such an increase. A one- or two-dollar increase is reasonable, but I can't afford a 50% increase,” Kavari said.

Drieka Basson, who said she already spent more than N$100 a day on taxi fares for herself and her extended family, also said that a 20% increase would be fair, but anything more would force her to switch to buses or make alternative arrangements

“The taxi union also needs to think of the consumer. I can't pay 50% more. It doesn't fit my budget.”

Taxi drivers had mixed responses.

One operator, who preferred not to give his name, said a 50% increase would be too much and could scare away taxi users.

Tobias Tobias, a long-time taxi operator, felt that a 50% increase would be fair.

“I don't think it is too much. Things are expensive, fuel, tyres and other car parts have become very expensive.”

Likukela further warned that “even the slightest increase in any of the items in the consumer basket can lead to a noticeable reduction in the purchasing power of consumers.”

He agreed that a taxi fare hike was justifiable, though.

A marginal hike of around 20%, while not completely covering their operating costs, would help address rising car maintenance costs that were cutting deep into the income of taxi operators, he said.

In the long term, one solution proposed by Likukela was to strengthen the public transport system, including the municipal bus service.

Another option is for the government and other large employers to provide transport for their employees.

JANA-MARI SMITH