The taxi problem in Istanbul was once again on the agenda of experts. In the panel held within the scope of the 17th ITS European Congress, the huge difference between the population growth in the city and the supply of licensed taxis was discussed. While the population of Istanbul has increased by 131 percent in the last 35 years, the number of licensed taxis in the city has grown by only 17 percent, making the structural problem on the transportation side more visible.
“Moving Society to the Future: Will Smart Regulations Reveal the Future of Mobility?” hosted by Yandex Turkey. In the session titled; Taxi supply, ride-hailing platforms, smart regulations and possible compensation mechanisms for existing license plate owners were discussed. Prof. from the Institute of Transport Economics in Oslo attended the panel. Jørgen Aarhaug, Yango Special Projects Public Policy Director Erlend Eidsvoll and Senior Policy and Public Affairs Advisor Ussal Shahbaz attended.
David Mothander moderated the session. Istanbul’s taxi supply fell behind the city’s growth. One of the main agendas of the panel was the difference between the population growth in Istanbul and the taxi supply. According to experts, the fact that the number of taxis does not increase at the same pace as the city grows becomes a problem that affects not only daily transportation comfort but also economic efficiency. Prof.
Jørgen Aarhaug evaluated this situation as a classic “supply shortage” problem. According to Aarhaug, limited supply prevents the full value that can be collected in the market. However, who will benefit from this increase in value depends on how the regulations are designed. Aarhaug also emphasized that regulations should not always be seen as an obstacle. When designed correctly, regulations can enable cities to establish a healthier balance between restrictions and incentives in the transportation system.
Mobility regulations also affect investment perception. Ussal Şahbaz, who spoke at the panel, did not address the issue only as a taxi or urban transportation issue. According to Şahbaz, Turkey’s regulatory approach in the field of mobility is also read by global technology investors as an indicator of the country’s openness to innovation. At this point, it was stated that restrictive approaches towards on-call transportation platforms could affect not only transportation companies, but also fintech, health technologies and similar digital sectors.
Shahbaz pointed out that investors evaluate the technology regulation reflex in a country together in different areas. Shahbaz also warned about autonomous vehicles. He said that at a time when autonomous vehicle applications are coming to the fore in regional centers such as Dubai and Riyadh, cities that cannot establish a healthy relationship with platform operators may be left out of this transformation. Emphasis on compensation for plate holders in taxi reform.
One of the prominent topics in the panel was the situation of current taxi plate owners. Ussal Shahbaz stated that if the taxi service is expanded or new models are included in the system, the economic position of existing license plate owners cannot be ignored. According to Shahbaz, a successful reform should not be limited only to technical regulations. A realistic and fair compensation mechanism for segments whose position in the market will change should also be part of the plan.
This approach shows that the taxi problem in Istanbul is not just a matter of “more vehicles” or “more applications”. According to experts, political, economic and technological balance must be established together for a permanent solution. On-call transportation can be complementary to taxis, not a rival. Yango Special Projects Public Policy Director Erlend Eidsvoll said that on-call transportation services should not be seen as a direct threat to traditional taxis.
According to Eidsvoll, application-based ride services and the classic taxi system can become two structures that complement each other under the right regulation. Eidsvoll stated that demand matching algorithms can provide a significant efficiency gain in urban transportation. In particular, the reduction of travel times without passengers was cited as one of the factors that can reduce both fuel consumption and revenue loss.
Giving examples from Portugal and Scandinavian countries, Eidsvoll stated that updated regulations can increase vehicle supply, facilitate operations, and enable different service models to work together within the same transportation ecosystem. Smart regulation can play a critical role in Istanbul’s mobility future. The common message from the panel was that prohibitive or completely laissez-faire approaches alone are sufficient for Istanbul’s taxi and urban transportation problem.
It was said that it would not happen. According to experts, the city needs a more flexible, data-based and fair regulation model in the face of population growth and changing travel habits. This model is not limited to just increasing the number of taxis; It needs to consider together the on-call transportation platforms, the transition to electric and autonomous vehicles, the rights of existing plate holders, and the message given to the investment environment.
For a city like Istanbul, whose population and transportation demand is rapidly growing, mobility is no longer just a matter of daily travel. At the same time, it has become a strategic topic in terms of openness to technology, urban planning, economic efficiency and investment attractiveness.
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