Bolt, Uklon, and Uber may be required to screen drivers for criminal records: what we know
10 June 21:52
Following the Verkhovna Rada’s adoption of a law on the automatic exchange of information regarding income on digital platforms, the Ministry of Community and Territorial Development has been able to move forward with reforming the taxi market in Ukraine. One of the key innovations could be mandatory background checks for drivers by services such as Bolt, Uklon, and Uber.
This was reported by the Ministry of Regional Development, according to "Komersant Ukrainian".
On June 9, the Verkhovna Rada adopted a law on the automatic exchange of information regarding income earned through digital platforms. The document implements the European DAC7 directive and establishes rules for the state’s interaction with digital services.
According to Serhiy Derkach, Deputy Minister of Community and Territorial Development, it was precisely the lack of legal regulation of digital platforms that previously made taxi reform impossible.
“It was precisely the absence of this regulation that blocked taxi reform and the formalization of the market,” Derkach stated.
What is the problem with the current market
The Ministry of Development believes that today, digital platforms are effectively operating in the taxi market but do not bear the same responsibilities as traditional carriers.
According to Derkach, such services are not licensed as carriers, do not monitor the technical condition of vehicles, and do not provide adequate passenger insurance.
“In fact, these companies provide taxi services, but they do not acknowledge this and are not licensed as carriers. Passenger insurance, as required for taxis, does not apply. The technical condition of the vehicles is not checked by the platforms.”
One of the main changes will be the introduction of mandatory background checks for drivers before they are allowed to work.
Currently, according to the official, platforms are not required to screen people who transport passengers through their apps.
If the reform is adopted, services may be required to verify:
- the validity of a driver’s license;
- medical certificates;
- criminal record;
- history of fines and violations;
- other documents required to work as a driver.
“As of today, there is no vetting of drivers. Platforms are not required to vet drivers to grant them access to provide passenger transportation services.”
The ministry attributes some crimes and traffic accidents involving taxi drivers to the lack of such checks.
What will change for drivers
The key idea behind the reform is the introduction of a new status: self-employed motor carrier.
The government claims that this will allow drivers to work legally without having to go through complex bureaucratic procedures or maintain full business accounting records.
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According to the reform concept, digital platforms will be required to:
- verify drivers’ documents;
- act as tax agents;
- report income information;
- monitor carriers’ eligibility to operate;
- be held liable for collaborating with illegal carriers.
It should be noted that officially, there are about 9,500 taxis operating in the country, while in reality there are over 200,000 drivers on the market. Thus, over 90% of the market operates in the shadows.
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