MOLDOVA

ON DEMAND TRANSPORT

MARKET OVERVIEW

MOLDOVA

Cultural Understanding

Booziest nation Biggest wine cellar Trilingual: Longest president-less

on Earth according and biggest single Romanian 77.6%, parliament in Europe
to WHO 1 wine collection Russian 18%, (27 months) 4
2
(according to Guinness) Gagauz 4.4% 3

The micro indicators

5

Currency EUR USD RON UAH

MDL 21 17,6 4,5 0,67

Population Evolution (Mil.) 6

1990 1995 2010 2015

Moldova
*excluding Transnistria
3,7 3,6 3,5 3,5

Romania
23,2 22,6 20,2 19,8

Ukraine

45,8 45,2

51,9 51,5

Mobile Cellular Subscriptions (per 100 people) 7

2010 2011 2012 2013 2014 2015

Moldova 71

91 102 106 108 108

Romania
111 107 105 106 106 107

Ukraine
117 121 130 138 144 144

Mobile/Internet Penetration 8

2010 2011 2012 2013 2014 2015

Moldova 32,3 38 43,4 45 46,6 49,8

Romania
39,9 40 45,9 49,8 54,1 55,8

Ukraine 23,3 28,7 35,3 41 46,2 49,3

Bank Cards In Use National Bank Card Operations Foreign Bank Card Operations
2%
8%
0%
3% 0%
427.440.000

0% 21%
419.288.400

-9%
388.230.000
14.569.500
14.542.200
14.148.700

13.840.000

0%
12.600.000
11.440.000

2.385.205
2.089.483
26.194.789

1.765.223
21.198.801

23.743.964
1.302.225
1.150.969

1.290.164

18% 14%
13% 10% 0%
0% -1% 0% 12%

2013 2014 2015 2013 2014 2015 2013 2014 2015

Moldova 9
Romania 10

TRANSPORT USAGE
Passengers - KM STATS
11

0% 0%
-7%
80.000.000 -5% -6%
-26%
80.100.000

80.500.000

60.000.000
74.500.000

75.000.000
76.000.000

59.000.000

40.000.000
20.000.000

2010 2011 2012 2013 2014 2015

Taxi Passengers - Year

8 Mil. passengers/year

0% -4%
-13% -12%
-23%
4.262.400

-32%
4.085.500

3.761.700
3.724.400

3.285.200
2.880.000

2010 2011 2012 2013 2014 2015 2015

real number
of passengers

Public Transport usage 12

Public Transport usage
Chisinau - Work Days Chisinau - Weekends
BUS TROLLEYBUS TRAIN TAXI BUS TROLLEYBUS TRAIN TAXI

DAY HOURS DAY HOURS

Survey: Most important criteria for ride hailing

13

53% Price
17% Brand
14% Quick pick-up
10% Car comfort
3% Customer service
3% Attractive Marketing

LEGAL FRAMEWORK

Governing Bodies ANTA

Licensing Chamber of Moldova

14
National Agency City Councils 16
Main licensing body of Auto Transporters 15 Collects the city tax. Hands
Certies the mandatory out car authorizations
transport manager

Lobby
Employers Association
17

Alliance of top 6 taxi owners

Governing Law
19
Code of road License requirements Regulation for transport
transport 18 of passengers and luggage
20

City council rules Inclusion for disabled

21

people - law case 22

How it (should) works for Taxi rms

THE DRIVER

21 years of age
Driver license holder for at
least 3 years
Passes the car inspection and
the medical test every morning

THE FIRM

Licensed by Licensing Chamber of Moldova

Authorization by: City Council
Taxi Company: from Jan 2017 own min. 20% of vehicles under
its operation (probably law pushed by Employers Association)
Hire contract for certied HSE transport manager
Hire contract for medical sta
Technical inspection equipment for vehicles on site

THE CAR

TAXI Badge:
Insurance busy free
Drivers photo and name
Companys name

5 lei / km
2 lei pe minut
in ambuteiaj
5 lei per stop Taximeters
Yellow car
plates instead
of white ones 23

2011
2010
2009
2008
2007

4 to 7 seats Not older than

Visible pricing from 7 years
5m on front doors

TAXI MARKET

Chisinau Taxi History

24

1949 1983 1994 2012 2015

11 taxis 650 taxis privatization 5 digit phone 28 licensed active

4 trucks of the company number companies in Chisinau
100% state owned 14 XXX 2560 taxis

Chisinau Taxi Companies Overview

25 26

2000 Licensed cars 126 companies with valid licenses

560 Freelance drivers

28 active companies in Chisinau

companies operate 1000 vehicles

4.06 taxis per 000 capital population
6 form the Employers Union
use same on-demand app - iTaxi

regular
service

X 1.4
Drivers receive orders Price Surging (+40%)
on a mobile device

Cargo Truck Taxi Dont drink and drive

*including goods handling service

Package delivery

On-Demand Mobile Apps

Active

Downloads: 80.000
Car pool: 1.000 cars
9 partner companies
Only licensed drivers

Options:
Request sedan, van Choose comfort vehicle
Choose taxi rm (2-3 y.o. air-onditioned Skoda Octavia)
or cargo truck
operated by app owner

License: Public transport of passengers (not a taxi license)

1 partner company
Licensed and non-licensed drivers

Choose destination Choose vehicle type Monitor driver en route

Failed

NoTaxi

Order via app Order via app Order via app, web or call
20 seconds 30 seconds 30 seconds

Revenue Revenue Revenue

1 EUR/ per day from each driver commisions from orders 20 EUR/day from each driver

Focus group Focus group Focus group

Licensed & freelance drivers Licensed & freelance drivers Cars operating under own brand

Includes device, equipment,

mobile internet package

Oer in-car WiFi since driver

already has the mobile device

Ordering a Cab

myTaxi

from

to

Sign in

Select destination Receive call from robot

Call the 14XXX number or SMS (detailing pick-up
Order on company Get xed price time, car color, plate
website or app numbers, xed price)
Order on aggregator app

Drive to destination
Get a receipt Pay fare in cash
(the author of this Meet driver
report never saw a
taxi receipt or
taximeter working)

May 2016: 10-20% price hike per trip Motive: trac jams
27

The 20+ active companies agree on a price hike rarely. Price hikes can also be reversed after a while.

Company Expenses Driver Expenses

License per company

150 EUR per company per 5 years Car repairs

City tax 28

Insurance
13,6 EUR per month per vehicle

Car insurance 29

Fuel
50 EUR per year per vehicle

Corporate tax 30

Car leasing
12%

14 XXX phone number 20 EUR per 24 hours

500 EUR per year per number for receiving taxi orders

Commission for on-demand partner apps

5-10%
Fines
2012 - 6 drivers ocially ned for non-licensed
taxi service
1-2 x rm inspections per year for conformity.
Many rms are able to obtain a pre-notication.

The challenges for the city ride market are considerable

THE NEXT STEP

will certainly set the pace

contact@empo-solutions.com andrei.valcov@gmail.com
Prepared by +373 7888 5333
Design by Andrei Valcov http://andreivalcov.por tfoliobox.io/

1 World Health Organization (2012) http://www.euro.who.int/__data/assets/pdf_le/0005/185216/Leading-risk-factors-for-health-in-Europe-Fact-Sheet.pdf

2 Guinness Book
3 National Bureau of Statistics of Moldova
4 Euronews
5 National Bank of Moldova, 2 Nov 2016
6 World Bank http://data.worldbank.org/indicator/SP.POP.TOTL
7 World Bank http://data.worldbank.org/indicator/IT.CEL.SETS.P2
8 World Bank http://data.worldbank.org/indicator/IT.CEL.SETS.P2
9 National Bank of Moldova: http://bnm.md/bdi/pages/mainPage.xhtml
10
National Bank of Romania
11
National Bureau of Statistics of Moldova
12
National Bureau of Statistics of Moldova http://www.statistica.md/public/les/publicatii_electronice/Utilizarea_timpului_RM/Infograce/Timp_transport.pdf
13
Business Class Journal http://www.businessclass.md/%D0%B0%D0%B2%D1%82%D0%BE/Rinok_taxi_Moldovi/
14
Licensing Chamber of Moldova http://www.licentiere.gov.md/public/les/Ghid/Conditii%20de%20licentiere/11.taxi.pdf
15 National Agency of Auto Transporters http://anta.gov.md/content/servicii-taxi
16 National Agency of Auto Transporters http://anta.gov.md/content/servicii-taxi
17 City Councils http://www.chisinau.md/
18 Code of road transport http://lex.justice.md/md/354404/
19 License Requirements http://www.licentiere.gov.md/public/les/Ghid/Conditii%20de%20licentiere/11.taxi.pdf
20 Regulation for transport of passengers and luggage http://lex.justice.md/md/316972/
21 City council rules http://www.chisinau.md/libview.php?l=ro&idc=403&id=1307
22 Inclusion for disabled people - law case http://egalitate.md/media/les/les/decizie_333_2015_depersonalizat_1628997.pdf
23 Government Decree nr. 88 http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=351548
24 Idis Viitorul Study http://www.viitorul.org/download.php?le=cHVibGljL3B1YmxpY2F0aW9ucy85ODAvcm8vUG9saXRpY2kgUHVibGljZV9UYXhpLnBkZg%3D%3D
25 My Business Week News http://mybusiness.md/ro/categories/analitica-si-investigatii/item/4002-soferii-de-taxi-pleaca-pe-bordura
26 Licensing Chamber of Moldova
27 Bloknot News http://bloknot-moldova.md/news/sluzhby-taksi-iz-za-probok-v-kishineve-povyshayut--744639
28 Chisinau Municipal City Council Decree http://chisinau.md/download.php?le=cHVibGljL3B1YmxpY2F0aW9ucy8xNTkwMzQwOF9tZF8yXzRfY21jLnBkZg%3D%3D
29 Grawe Insurance http://www.grawe.md/ro/fata_de_pasageri.htm#1001-tab
30 Ernst & Young http://www.ey.com/gl/en/services/tax/worldwide-corporate-tax-guide---xmlqs?preview&XmlUrl=/ec1mages/taxguides/WCTG-2016/WCTG-MD.xml