Jordan’s yellow taxis push for modernization amid app competition

Voices are rising within Jordan’s public transport sector, calling for a comprehensive new system for the yellow taxis aimed at modernizing the sector, saving it from current challenges, and keeping pace with developments brought by smart ride-hailing apps.

Owners and drivers of yellow taxis believe that the current system has become outdated and no longer meets the demands of the present, especially given the intense competition from app-based companies that operate under a more flexible and modern regulatory framework.

- Regulatory gap -

The core problem, according to sources in the Taxi Owners’ Association, lies in the “regulatory gap” between the rules governing yellow taxis and the regulations applied to smart ride-hailing apps.

While yellow taxis operate under a fixed meter fare and strict rules regarding pick-up and drop-off locations, smart apps enjoy greater flexibility in pricing based on supply and demand (dynamic pricing) and use technology to reach passengers more efficiently.

This disparity has led to a significant decline in yellow taxi drivers’ revenues, pushing many to the brink of bankruptcy and threatening the sustainability of a vital sector that provides thousands of jobs.

- Key demands for a new system -

The main demands voiced by those working in the yellow taxi sector focus on several key points, aimed at achieving “regulatory fairness” and a level playing field:

• Allowing the use of smart apps: The primary demand is to permit yellow taxis to operate through their own smart apps or join existing platforms, giving them access to a wider passenger base.
• Updating the fare system: There is a call to review the current meter system and allow more flexible pricing that reflects peak hours and longer distances, similar to smart apps.
• A unified national system: Some propose creating a unified national app supervised by the Land Transport Regulatory Authority (LTRC), covering all yellow taxis, to standardize service and ensure quality.
• Raising service standards: Advocates for modernization emphasize that any new system should be linked to strict quality standards, including driver training, vehicle updates, and ensuring the highest levels of passenger safety.

- Need for an official response -

Workers in the yellow taxi sector see the government’s current review of the smart apps system as a golden opportunity to address this imbalance. They hope that new amendments will include measures to modernize their sector and establish a fair and unified regulatory framework that ensures yellow taxis remain a vital part of Jordan’s public transport system, rather than being left to face an uncertain future.