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50%-100% increase in taxi fares in Ramadan
By Omar Elmershedi
Published in The Saudi Gazette on 31 - 07 - 2011

Taxi fares may rise between 50 and 100 percent from the middle to the end of Ramadan, say three taxi company managers. This once-yearly price hike can be attributed to increased visits to family and friends, more shopping trips and congested streets.
A 3.5-kilometer ride from King Abdul Aziz Street in the center of Jeddah to Meridian Hotel normally costs SR10, but is likely to shoot up to between SR15 and SR20. Normally the trip takes 20 minutes, but in Ramadan it is likely to take 40 minutes.
“During the day people are either at work or sleeping. The evenings are for family visits and shopping. People prefer to use taxis instead of their cars because it is almost impossible to find parking spaces even in gated areas,” said Awad Bin Yameen, a Yemeni taxi driver who has been in the business for seven years.
Jeddah has unsuccessfully tried to use meters to determine taxi fares. However, neither taxi drivers nor passengers were happy because the negotiated fare between the two parties was less than the meter reading. “I think it overcharged passengers. Drivers were willing to accept a fare less than the stated meter price,” said Hasanain Aboutaleb, an Egyptian taxi company manager, who has worked in Jeddah for eight years.
At the end of January 2009, 34 taxi companies were licensed to operate in Jeddah with a total of about 1,400 cars.
The private sector taxi industry is dominated by Saudi citizens and expatriate workers. “We hire drivers on a fixed daily return basis. Each driver is expected to yield SR250 and the extra money he makes is his,” said Fahd Abomansour, who runs a family business of 45 cars.
The income varies according to the age of the car. “Usually the newer cars cost more to lease and so the driver is expected to bring in about SR300,” added Abomansour.
Taxi company managers do not set minimum service hours for drivers. It is left to each driver to decide on hours to make the target and further income. “This system is satisfactory to us and to drivers. The daily SR250 is the minimum for us to stay in business,” said Abomansour.
The Jeddah Mayoralty is finally admitting that Jeddah should depend more on bridges and tunnels and less on traffic-light controlled intersections. With more than 18 roads being widened and flyovers and tunnels being constructed, this gives less space for cars to move. “Road repairs and blocked lanes with more cars on the roads leave less time for us to make money,” said Misfer Alsulaimani, a warehouse supervisor with the Ministry of Health, and part-time self-employed taxi driver.
Alsulaimani is benefiting from the Jameel Company program to increase Saudization in the taxi business. “During non-Ramadan days I make about SR200 for five hours of work serving 12 to 14 passengers. In Ramadan the number goes down to five to six passengers for the same time period so it is normal rates should go up.”
Many say Ramadan evening traffic means more cars on the roads and less money for companies and drivers, which is basic supply and demand. __


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