Procurement of Publicly Reimbursed Taxi Services
Tiivistelmä
Publicly reimbursed taxi trips play an important role in the taxi markets of several European countries. In Finland, publicly reimbursed trips account for around 40% of the entire market. The Finnish taxi market was heavily reformed in July 2018 when the private market was completely deregulated with
respect to prices and market entry. Simultaneously with the market deregulation, the country’s largest public financer of taxi rides began tendering regional dispatch centers and their prices through public procurement. In this study, we examine the effects of these procurements on prices and expenditures of publicly reimbursed taxi trips. We show that the first two procurement rounds have led to significant cost savings due to the increased competition, especially in the second procurement round. Altogether, we estimate that the procurements led to total savings of around 132 million euros (12.1%) in the first 4.5 years. Our results also show that when passengers have a choice of two dispatch centers, local and established centers have on average higher market shares. Finally, we show that four years post deregulation the publicly procured prices were fairly similar to private
market prices in large cities, but lower in small and medium-sized municipalities.
Tekijät
Iiro Ahomäki, Visa Pitkänen, Antti Sieppi, Anni Väättänen
Lisätietoja julkaisusta
- Vertaisarvioitu: ei.
- Avoin saatavuus: kyllä.
- Koko viite: Ahomäki, I., Pitkänen, V., Sieppi, A., & Väättänen, A. (2024). Procurement of publicly reimbursed taxi services (Working Papers 2/2024). Finnish Competition and Consumer Authority. https://www.kkv.fi/tutkimus-ja-vaikuttaminen/julkaisut/working-papers/procurement-of-publicly-reimbursed-taxi-services/
