Overwhelmed with excitement, we approach the yellow box with a bright red button on the nearest lamp post. Is it a traffic light switch? No, it's the beginning of a journey. We press the button, unsure if anything is ever to come out of this, to call in the yellow cab. How long shall we wait? How will we know this yellow taxi is ours to enjoy? The doubts are instantly dispelled when a soiled yellow vehicle with scuffed license plates appears from behind the corner and stops near the lamp post. As we open the car doors, the lingering smell of cigarette smoke so thoroughly mixed with a lemony cologne ruthlessly hits our senses. Not much is left for us to do but sit down on the patterned soft worn carpet covering the seats.
The driver, a man with bushy eyebrows and deep wrinkles on his face, lits (yet another) cigarette and looks at us. «Where are you going?» – he asks irritably. «To the hotel California, please» – we answer, trying not to sing. «Where is it?», – he seems confused. So are we – he is the driver in this city, after all. As we open Google Maps to show him the hotel, something shattering happens. Frowning, the driver grabs the phone out of your hand, presses navigation, and puts your phone on his car holder. The car finally starts moving.
As we look at each other eyes, the silent question emerges:
«Is it just us or is this the Turkish taxi phenomenon?»
It's not just us.
Meet the tales of Turkish taxi we've gathered during this journey.
«During one of my visits, I booked a cab through the app and went outside the airport to wait for the car. However, things went off the rails. The driver called me and started speaking in poor English, mentioning something about cash. I explained that the order had already been paid through the app with a card and I didn't have any Turkish Lira in cash. We ended the conversation and I continued to wait for the driver at the designated counter. A few minutes later, the driver arrived. Knowing that I insisted on paying through the app, he tried to set a higher cash price. I showed him the order confirmation and his profile on my phone screen to prove that the order had already been made. He finally came to his senses and we hit the road. However, the fun part was just ahead. The driver, the very moment we left the airport, pulled out his phone and started translating something through the app. It seemed to me that he tried to explain in his own words that he had to cancel the reservation and go back to the starting line because of some confusion. I sighed and decided to comply, watching us head back to the airport. However, to my surprise, everything else went smoothly. Later another driver pulled up, greeted me by name, and helped me put my stuff in the trunk. He clarified the name of my hotel and we hit the road. I finally felt safe»
— Arseny, the diplomat (regular passerby in Istanbul).
«We went on a cruise liner with my family to Istanbul. In Istanbul, we decided to take a taxi to see the sights. We agreed with the taxi driver on $70. But in the end, he asked for $150. We started bargaining and reminded him that we agreed on $70. We held the money in our hands, but he quickly grabbed $50 and another $50 in Turkish Lira. He then took a calculator and started calculating something, showing us the result. We decided to let it go at 100. These swindlers try to bargain dishonestly»
— Ramill, TV channel director (first time in Turkey).
«Once, my child and I needed to leave a restaurant. Many people were waiting for taxis in the parking lot. When we approached a taxi, two other men started arguing about who would get in the taxi first. The driver had limited knowledge of English and said he could take all of us at the same time. It was scary to ride in the same car with two strangers, but the story ended well, and the driver didn't take any money from us»
— Eugenia, a mother of one (often visits Turkey for vacations).
The driver turns on the music. A high-pitched female voice almost howls of... love or something, we don't know. It's loud and excessive. It's loud to the point where we can barely hear our thoughts. What was the question...
Ah, right, why is the Turkish taxi experience so unique?
The taxi industry in Turkey is operated by private taxi companies, each having a fleet of around 100 cars to provide services in limited city areas. Taxis are legally bound to calculate fares using installed taximeters that take into account the distance traveled and the duration of the trip. Taxi fares start with a base fee and additional charges are added for each kilometer traveled, with an additional fee for waiting time or road tolls.
Cab drivers in Turkey do not usually overcharge, as there is a flat rate. However, they often start haggling with tourists or set inflated prices. Moreover, sometimes they point out various reasons why they cannot reach the final destination. Tourists may try to negotiate a lower price, especially within 500 liras ($15). Cab drivers often prefer to receive round sums, such as 500 liras, even if this amount may be higher than the cost of a trip.
— An immigrant expert who lived in Istanbul for a long time.
To work legally in the taxi industry in Turkey, drivers must obtain a taxi license from the relevant municipal authority. Licenses are issued for specific vehicles and have various requirements, including background checks, vehicle inspections, and compliance with safety standards. The number of taxi licenses that can be issued in each municipality may be limited to control the number of taxis operating in a particular area.
There are plenty of options for passengers to call in the taxis in Turkey:
- Passengers can order a taxi by calling a taxi station or visit it personally
- In major cities, there are few taxi apps available — local BiTaxi and international Uber.
- It is possible to hail a taxi on the street.
- In some regions, there are radio-based taxi call buttons installed on city streets by the taxi station owners. The respective taxi station who installed the button will receive a signal from the button to pick up the passenger.
The taxi industry in big cities, notably in Istanbul, has been accused of worrisome problems: sexual harassment, overcharging, rudeness, and unsafe driving. This has led to municipal efforts to reform the city's taxi service and consider transitioning to a municipality-managed taxi system. Reviewing improvements such as card payment and enhanced accessibility remains problematic, with tourists continuing to complain about overcharging and fare discrepancies caused by taxi apps.
Most of the problems in Turkish taxi experiences stem from the flaws in the system design. Changing the system itself (like transitioning to a municipality-managed taxi system for Turkey or changing the underlying business processes for a bank) may be the fastest shortcut to ensuring an amazing experience.
«Cab drivers in Turkey, while often not wearing seatbelts, drive very fast and expressively, which can be surprising and even frightening to passengers. Some tourists, especially those who are used to smoking restrictions in public places, often complain that cab drivers smoke during the ride, which is an unpleasant experience for them. However, drivers usually do not react positively when a passenger shows them that they are against smoking or talking on the phone.
Cab drivers' reactions can be aggressive or passive-aggressive, and in some cases, they may even tell the passenger to get out of the car. Consequently, tourists, especially those with a language barrier, can rarely object or make remarks, so they often just tolerate these unpleasant situations»
— An immigrant expert who lived in Istanbul for a long time.
Taxi drivers themselves complain about low fares and the discrepancy between fare increases and the growth of minimum wage.
Wait, but what about Uber?
Hold on. The driver turns the music down. Are we nearing our destination already? No, not yet, the driver receives an incoming phone call, which he enthusiastically accepts. We thought the music was loud, but oh boy, the conversation is so active we almost feel ourselves a part of it.
Attempts to introduce alternatives such as Uber in Turkey have faced resistance from the influential taxi lobby, leading to a ban on the app in the early stages. Protests, clashes, and blocking of cars operating through the Uber app were some of the manifestations of disagreement among taxi drivers.
The debates about Uber in Turkey have become as polarizing as politics under President Recep Tayyip Erdogan. Drivers outside the courthouse chanted, «Jewish, Zionist Uber! Get out of my country!». One of them stated that he would stop voting for the ruling Justice and Development Party if Uber's license was not revoked. Other statements were more radical: «If the court rules are against us, we will kill Uber drivers», — said Murat Aslan, who had been saving money for 15 years to buy his taxi license.
This conflict resulted in a temporary ban on Uber in Turkey and difficulties in resolving the contradictions between traditional taxi drivers and new digital services. Gradually, Uber began to operate again in some major cities in Turkey as originally intended: offering safe rides, the convenience of quick taxi hailing without relying on traditional taxi stations, options for cashless payment, and other amenities.
«We stand for entrepreneurship. We won't leave our taxi drivers to the mercy of fate, but Uber is gaining market share because it is well-received by the public», — said Bulent Tufenkci, the Minister of Customs and Trade.
However, in practice, tourists and residents continue to actively voice complaints about issues related to taxi services. This is especially true when it comes to payment options and discrepancies between fare calculations provided through the mobile app and the actual fares charged.
There is also a risk of a scam when a person calls a cab through the Uber app. Undercover Uber cab drivers may refuse the ride or demand a higher price. In such cases, guests may find themselves in an unpleasant situation if they do not agree to the cab driver's additional demands. When hailing a cab through the InDriver app, travelers can choose the cost of the trip immediately when ordering to avoid standard cab driver manipulation. This helps to ensure peace of mind and consistency in the amount.
— An immigrant expert who lived in Istanbul for a long time.
Uber's universal pricing algorithm failed to provide adequate pricing for Turkish drivers, whereas a different approach to pricing by InDriver, allowing markets to regulate prices directly by haggling, thrived in a huge and relatively free Turkish market.
Flexibility ensures a robust experience. Adapting the product to local markets may require not only design changes but also shifts in some business processes.
We're half-way through, so let's ask the driver what he thinks about Turkish taxi.
Ahmet (name changed) seems unwilling to start our interview with the problems, so we focus on positives.
- We've never seen a button to call a cab, it's so unusual!
Ahmet: I believe that the taxi call buttons located on the street are intended for elderly passengers. Old people usually don't have telephones or the Internet. There's no other option that they could know except the button. Additionally, maybe some people’s houses are near the side of the button. Push the button — the taxi is coming.
- We've heard that to become a cab driver in Turkey, you have to get a license. How difficult is it?
Ahmet: The cost of a taxi license in Turkey continues to rise. The highest rate is noted in Istanbul, where such a license costs 650,000 dollars. The license holder has the option to either drive the taxi themselves or lease their vehicle to another driver. Since taxi services are provided 24/7, each car is leased to two tenants, each of whom can use it for 12 hours per day. On average, the taxi owner receives $3,000 per month in rent for their vehicle. This means that each driver pays them $1,500, keeping the rest of the profit for themselves. The income of Istanbul taxi drivers ranges from $500 to $2,500 per month, depending on the season and other factors.
- Why do taxi drivers dislike the taximeter?
Ahmet: The taximeter is important for customers. With Turkish passengers drivers easily start a taximeter. But they do not open a taximeter for tourists, they only give the price. Every time I ask the drivers: «Why don't you open the taximeter?». They tell me: «I don't need a taximеter because he's a tourist». With tourists, some drivers only care about money. For me personally customers, people, are the most important part. You are the people, you are human, doesn't matter if you are a tourist or not. You maybe coming from a different country, yes. But for me, it is no problem.
- What's the conflict with Uber?
Ahmet: Yellow cab drivers don't trust Uber. In my opinion, it's half-legal. Uber drivers don't pay mandatory insurances and don't respond to taxi government. Let's say in the yellow taxi, you face a problem — you can go to the police, and the police will solve the problem and help you. But Uber isn't like yellow taxi so in Uber, it's a problem to regulate conflicts.
- Why is the Airport taxi so different from other taxis?
Ahmet: Airport taxi license is very expensive and has its own boss. Most of the drivers are continuing their taxi dynasty. Outside the airport, not many people are tourists. In airports, everyone is a tourist. At the airport, taxi drivers have to clean their car and take payment in any currency — not only in lira but also in dollars or euros. One time my customer came to the airport while I was sleeping. Later I found out that another taxi driver said to my customer that it was €30, while it may have been €15 for that taxi drive. I called this taxi driver and asked: «Why did I say this drive is €30? He's a tourist, he said. Yes, tourist, but he's also a human».
Excellent customer experience is nearly unachievable without top management's commitment. Having the same system and drivers, airport taxi in Turkey has less problematic experience when compared to regular city taxis - all due to airport authorities' interest in providing a consistent experience for travelers, exiting the airport.
Customer and user experience directly impact the revenue of the business, so it's paramount to buy the top management in on prioritizing the design of an excellent experience.
- What are the biggest problems with Turkish taxi in your opinion?
Ahmet: I consider older taxi drivers to be a big problem for the taxi business. The world has changed a lot, young people are different, they need money, they are customer-centric. A young driver will be polite, have a navigation system, and keep their car clean because it's in their interest to earn money and ensure customer satisfaction. Older taxi drivers often don't care about customers, but care about the money. They don't even need the money sometimes. In 10 years, I plan to retire, but my father who already has 2 houses, keeps on working. Why? I don't know. Some older taxi drivers don't leave the industry even when they don't need the money. They often rely on intuition instead of navigation apps, are impolite with customers, smoke, and drive in dirty cars.
- What about price fraud? Is that about old people too?
Ahmet: There are many cases where taxi drivers overcharge for a ride. Unfortunately, it doesn't depend on whether the driver is old or young. It's a 50/50 on how good and honest the person is. Many taxi drivers don't like this job, but they like the money it brings. That's why they charge tourists a higher fare than the actual price. They always hope that the tourists don't know the real price.
- There is also a problem with territories, right?
Ahmet: Yes, every station has a territory assigned and often they fight with each other for clients. Say, you're ordering a taxi by phone to come pick you up in the hotel. Outside taxis are not allowed to come, this territory is for hotel taxis only. They will get in trouble if they try to come. It's much worse with the airport taxi: I remember a case in Antalya when 5 taxi licensed were revoked because of the massive fight between yellow cab drivers drivers and private transfers who came to pick up their clients.
Sounds crazy? It's nothing compared to my recent memory: trying to call in Uber and seeing a random yellow cab driver block my ride, fight with the taxi driver and demanding to hand me over to him. Without ever directly addressing me, of course. As the economy declines, these fightings get more common... and brutal.
«My drivers are scared. Taxi drivers are chasing and attacking them everywhere in Istanbul,» said Bekir Cambaz, who owns 52 Uber cars and two yellow taxis in 2018. «One of my drivers has just been hospitalized with a concussion after being beaten at the main bus station.»
- How would you personally fix all these problems?
Ahmet: I think there should be a new system where it is impossible to work as a cab driver after the age of 45. Government should introduce mandatory cleaning of the car for taxi stations and fine drivers for dirty car as they do in airport taxi. Taxi stations right now don't control the prices, because taxi station owners give taxi drivers the job. You don't even have a working hours, you're being called in randomly, assigned a client, you get a payment from him and have to give 50% to the taxi station owner. Imagine if the taxi station would be hold responsible for the price, then the owner cares enough to check the taximeter.
Attempts for some improvements were made many times. Istanbul Mayor Ekrem Imamoglu tried to break the taxi monopoly by introducing new taxi licensing, but faced opposition from members of the ruling Justice and Development Party. Instead of the introduction of an additional 6,000 licenses he proposed, in 2021 they barely added 1,000.
The night falls. The long-awaited hotel appears in front of us. Still touched deeply by the candid conversation with Ahmet, we think about the ruthless position Turkish taxi drivers are put in – crazy hours, low wages, and crazy license prices. It's time to part ways. «Card, please». The old card reader beeps in silence, indicating that today payment options are limited to cash only. Well, cash it is... «Teşekkür ederim. Güle güle».
