1/15/2014

Cuba to Privatize State Taxi Firm


                                             A man drives his Soviet-era Russian Lada taxi in Havana.

HAVANA — Thousands of Cuban state taxi drivers will soon lease their vehicles and work on their own as part of a reorganization of the country's taxi service aimed at improving efficiency, according to rules published on Wednesday.

In 1968 Cuba nationalized all retail business and fixed all prices. But in an attempt to stimulate the stagnant economy and reduce bureaucracy, it is giving some of it back in a form of legal private enterprise.

Drivers will become self-employed and lease a vehicle from Cubataxi - the official state taxi company - at a daily rate, according to the resolutions published in the official Gazette.

“Cubataxi will be downsized. The idea is to eliminate irregularities in the service and reduce inflated administrative payrolls. Cubataxi drivers are notorious for not using their meters” said Debora Canela Pina, a transportation ministry specialist at Cubadebate, an official on-line news site.

The new system is based on a pilot project that began in 2010 at a single garage in Havana. Thirty of the more than 2,000 state taxi drivers in the capital began leasing their vehicles instead of working for a wage and a small percentage of the tips.

The reorganization will improve service and 60 percent of taxis, many old Russian Ladas, will be replaced by newer models.

Outside the Havana Libre Hotel, two Cubataxi drivers said "We hope our new status will prove beneficial. Besides, we have no choice but to accept it or lose our jobs".


“We will pay 595 CUC (Cuban Convertible pesos) for the car and then after a month 39 CUC plus 40 CUP (Cuban pesos) a day,” Elio, one of the drivers, said at the time.

The drivers will be responsible for maintaining their taxi and gasoline, but will be able to buy parts and services from the state-company at reduced prices.

“This law will benefit us because the driver will have total control of his taxi and its maintenance,” said one driver, Alejandro Perez.





adapted from VOA