First ridesharers begin to show profits in Estonia

Uber and Taxify both provide ridesharing services in Estonia. (Liis Treimann/Postimees/Scanpix)
9/5/2016 9:50 AM
Category: Business

Ridesharing remains yet unregulated in Estonia, however the state has already begun to receive the field's first tax receipts.

At least three businesses are involved in the ridesharing business in Estonia — the internationally recognized Uber, local market leader Taxify and smaller firms such as Wisemile, however following in their footsteps, the electric car-based Elektritakso, for example, has agreed to remove taxi roof signs from their vehicles, and it is estimated that a total of 200-300 rideshare drivers can be found on Estonian roads, reported Estonian daily Postimees (link in Estonian).

The country's power structures have not been particularly fussed by the quasi-legal activity, however the Estonain Tax and Customs Bord (MTA) has recently established the opportunity to pay taxes on profits earned on ridesharing, and cooperation with Uber has been fruitful enough that drivers have the option to pay taxes on ride fares directly to the MTA via the Uber app.

Thus a total of 62 private persons declared profits earned driving for Uber and Taxify in 2015. These persons posted total profits averaging 70,000 euros, or an average of 1,120 person, which translates to 93 euros per month.

The Riigikogu is hoping to ratify amendments to the Public Transport Act this year which, upon entering into force, would legalize transport agreements. Until then, current law dictates that vehicles lacking the necessary licenses, taxi meters and vehicle identifiction may not provide taxi services.

Editor: Aili Vahtla

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