This month, Estonian transport on demand company Bolt has increased the level of commission for its driving service providers from 20 percent to 25 percent. To cover the difference, the company has also increased the cost of taxi rides for its customers by the same amount.
The price increase is aimed at ensuring "maximum benefit" for drivers, said Bolt spokesperson Liisi Maria Muuli.
"The higher commission gives us the opportunity to invest in the quality of the service and ensure the necessary flow of bookings," said Muuli.
"The commission fee is 25 percent in all the Baltic countries and many other European cities. We see that this has led to a better balance between demand and supply, which has helped to ensure a higher quality and more accessible service," Muuli added.
To compensate for the changes to drivers' incomes resulting from the increased commission fees, basic taxi fares for customers have also been raised by five percent in all categories except 'Premium' and 'XL'.
According to Bolt, the current economic environment makes it impossible to provide a quality service without changing their prices. "The increase in fares will improve the overall experience for passengers. If service providers are properly remunerated it will increase the number of journeys and make the service even more accessible to customers," said Muuli.
Editor: Michael Cole