Dorita Yiannakou
Cyprus authorities are moving forward with plans to overhaul the professional taxi sector, with a focus on technology and modernization. The Licensing Authority, part of the Ministry of Transport, Communications and Works, is preparing to submit its recommendations by the end of November, paving the way for consultations with industry stakeholders.
The Authority acknowledges that while much of society and the economy is rapidly evolving, the professional transport sector has lagged behind. Its proposals aim for a complete restructuring, including stricter oversight, fare regulation, and modernization of licensing procedures.
Key recommendations
The Licensing Authority has finalized two major recommendations expected to form the foundation of the reform:
Digital Oversight Platform: A state-controlled platform will involve all taxi owners and professional drivers. The system will not handle bookings but will function as a tool for supervision, transparency, and data collection. Officials say it will also help combat illegal taxi operations, one of the sector’s most persistent problems.
Professional Education: The Authority calls for mandatory, continuous professional education for all drivers. Despina Amerikanou, the Authority’s chair, said lifelong training is essential for upgrading the profession. The plan includes training centers and seminars to help drivers adapt to new technologies and societal requirements. Education will serve not just as a formal obligation but as a tool to improve service quality, safety, and the public image of taxi professionals.
Next steps
The Licensing Authority is expected to formally submit its recommendations to the Transport Minister by the end of November, triggering consultations with industry stakeholders. Officials say the goal is to create a modern, transparent, and efficient framework that responds to societal and economic needs.
The authorities plan to implement the reforms by April 2026, aiming to complete them ahead of the summer tourist season and the parliamentary elections in May.
Persistent problems
Current challenges in the sector include the resale of licenses for tens of thousands of euros, the absence of meters, chaos at airports, and unregulated fare pricing. Illegal operations, uneven distribution of licenses, and staff shortages are also long-standing issues.
Regulating the issuance of licenses per district is a priority. Studies show shortages in areas like Paphos, while Limassol and Larnaca remain oversupplied. Proposed reforms also include standardized fares through meters, mandatory POS (Point of Sale) terminals, and stricter enforcement of these measures.
The new strategy under consideration may include special licenses for drivers serving hotels or passengers with disabilities, as well as revisiting regulations for vans, rural taxis, and ride-hailing platforms such as Bolt. To address the shortage of professional drivers, authorities are also considering recruiting workers from abroad.
Studies by Frederick and Deloitte confirm that significant long-term reforms are needed. The Licensing Authority emphasizes that changes must be comprehensive and well-planned rather than piecemeal. “Reform must come first, and then new licenses can be discussed,” Amerikanou said, stressing collaboration between the Authority, the Department of Road Transport, and the Ministry of Transport.
This article was translated from its Greek original.
