Ordering a taxi “directly,” not through a service: such rides may be fined 8,500 hryvnias

Taxi drivers who operate illegally or violate new transportation rules may face fines of up to 17,000 UAH. The Ministry of Community and Territorial Development is preparing a draft law that for the first time introduces a separate system of administrative liability for the taxi market and ride-hailing services, as well as defines new operating rules for self-employed car carriers and digital platforms.

The draft law "On Amendments to the Code of Ukraine on Administrative Offenses Regarding Passenger Transportation by Taxi or Passenger Cars on Demand" developed by the Ministry of Development aims to ensure the implementation of upcoming changes to the legislation on motor transport. Its main goal is to create a separate system of administrative liability specifically for the taxi and on-demand transportation sector, taking into account the specifics of digital platforms, self-employed car carriers, and traditional carriers.

Why the government decided to change the rules

The current Law "On Motor Transport," adopted over 20 years ago, no longer corresponds to the modern market model. It does not define the legal status of self-employed car carriers, does not regulate the activities of digital platform operators, and lacks modern mechanisms for market access, state control, and liability.

The Ministry emphasizes that the absence of transparent rules has led to the spread of illegal transportation, unequal competition conditions among carriers, reduced passenger safety, and complicated state control. Moreover, the exclusive use of a licensing approach, according to the developers, no longer aligns with current trends of deregulation and digitalization of administrative procedures.

The draft law’s authors also note that it is currently practically impossible to determine the actual size of the taxi market. According to the licensing register, Ukraine has about 5,000 licenses for passenger taxi transportation, averaging only about 47 taxis per city. Meanwhile, pre-war market estimates indicated about 300,000 taxi vehicles, which, according to the ministry, indicates a significant illegal sector.

Additionally, according to digital platform operators, approximately 300,000 drivers currently cooperate with them, providing passenger transportation by taxi or passenger cars on demand.

What new fines are proposed

A key innovation of the draft law is the new Article 133³ of the Code of Ukraine on Administrative Offenses, which defines specific administrative offenses for the taxi and passenger car on-demand transportation sector.

Specifically, administrative liability is proposed for:

• performing paid passenger transportation without obtaining the right to provide such services or outside labor relations with a motor carrier;
• violations by self-employed car carriers of special legislative requirements;
• performing transportation if the order was received not through a digital platform;
• using a digital platform whose information is absent from the Unified Complex Information Systems in the field of ground transport safety;
• carrying out transportation without complying with vehicle technical condition requirements and mandatory equipment;
• violating the Rules for Providing Passenger Motor Transport Services, including repeated violations within a year.

How much will have to be paid

The draft law provides the following fines:

• 17,000 UAH (1,000 non-taxable minimum incomes) — for performing paid transportation without the right to provide services, without a labor contract with a motor carrier, or if the driver performs transportation outside their labor duties;
• 8,500 UAH (500 non-taxable minimum incomes) — for non-compliance by self-employed car carriers with legislative requirements;
• 8,500 UAH — for performing internal transportation by passenger car on demand if the order was received not through a digital platform;
• 8,500 UAH — for using a digital platform whose information is absent in the state information system;
• 8,500 UAH — for performing transportation without a taximeter accessible to the passenger (for taxis) or without a unique electronic identifier in the vehicle cabin performing on-demand transportation;
• 850 UAH (50 non-taxable minimum incomes) — for violating the Rules for Providing Passenger Motor Transport Services;
• 8,500 UAH — for repeated violations of these Rules within a year.

Which current fines are proposed to be canceled

At the same time, the draft law provides for a revision of certain current provisions of the Code of Administrative Offenses.

Specifically, it is proposed to exclude separate administrative liability for transporting passengers by taxi without an installed or with a malfunctioning taximeter. Instead, liability for such violations will be regulated by the new Article 133³.

It is also proposed not to apply the current provision on liability for transportation without passing pre-shift medical examination of the driver or pre-shift technical inspection of the vehicle to taxis and internal transportation by passenger cars on demand. These provisions will continue to apply to other types of motor transportation.

Who will control the new rules

The draft also changes the powers of authorities that will consider cases of new administrative offenses.

It is proposed to grant the right to consider such cases and impose administrative penalties to the head of the central executive body responsible for state policy on ground transport safety, their deputies, as well as heads of territorial bodies and their deputies. In addition, control over compliance with the legislation will be exercised by Ukrtransbezpeka and the National Police, which will conduct raid inspections.

What results does the Ministry of Development expect

The ministry believes that adopting the draft law will create a comprehensive system of administrative liability in the taxi sector, legalize a significant part of the market, increase passenger transportation safety, and ensure equal conditions for all market participants. An increase in tax revenues is also expected due to bringing part of the income out of the shadow economy.

At the same time, the regulatory impact analysis notes that the new rules will affect about 5,000 licensed business entities and potentially 300,000 self-employed car carriers. Additional tax revenues and strengthened market control are forecasted for the state.

The draft law provides that the new provisions will come into force six months after the official publication of the law, but not earlier than the entry into force of the basic law on regulating passenger transportation by taxi and passenger cars on demand. This period is intended to give market participants enough time to adapt to the new requirements.

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