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Lithuanian news

"CityBee" and "Bolt Drive" threaten to withdraw from Klaipėda

Made in Vilnius
in 2024 May 28 15:28
4 min. reading
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On Thursday, the Klaipėda City Municipal Council will consider the draft law, which foresees changes in the parking fee. Among the proposals is the removal of the tax exemption for car-sharing platforms. Representatives of car-sharing platforms see risks in this proposal - from next year, higher travel prices for customers, a shrinking car network or even exit from the market.

Among other proposals, the bill calls for removing the parking tax exemption for ride-sharing providers. CityBee andBolt According to representatives of Drive, this step would hinder the development of the sustainable development and mobility tools of the city of Klaipėda. Better conditions for businesses that offer sustainable solutions help to take care of the mobility of the population in the city, so some cities apply various incentives to encourage the development of car-sharing businesses.

If the decision is passed, CityBee and Bolt Drive will have to pay an updated parking charge as early as next summer.

"We understand the desire of Klaipėda city municipality to move towards harmonious solutions. However, it is important to take into account the fact that the planned measures, which ensure convenient movement for active city dwellers and are focused on reducing pollution in cities, will have a negative impact," says Greta Januskaitė-Karvelienė, head of CityBee.

Contributes to reducing pollution and congestion

The explanatory note of the project under consideration states that one of the reasons for changing the toll amounts is the occupancy of parking spaces, which exceeds 85% in a considerable part of the streets during peak hours, and also aims to reduce the pollution problem.

According to G. Januskaitė-Karvelienė, the services provided by sharing platforms are characterized by solutions that help to achieve these goals - they contribute to the reduction of pollution in cities, help free up parking spaces, for example, "CityBee" cars are used most of the time, so they do not occupy parking spaces for a long time. Also, by encouraging residents to give up their own cars, they also solve the problem of congestion on the streets.

According to Bolt Drive operations manager in Lithuania Svajūnas Aliukonis, it is estimated that one car of the sharing platform replaces about 17 private ones used to get to and from the city center. In addition, private vehicles are usually parked in city centers during working hours, while shared cars park for a short time in city centers, which reduces not only pollution, but also the load on spaces.

Another aspect is the age of the cars. Both the CityBee and Bolt Drive fleets are constantly renewed, with the average age of the vehicles being less than two years. This means that the cars are economical, less polluting and more environmentally friendly. In Lithuania, the average age of a private car is about 12-15 years.

Suggests implementing changes gradually

According to the interlocutors, in order to reduce car traffic in the city center, well-evaluated and gradually adopted measures are needed. A sudden tax burden on car-sharing platforms will make it difficult for businesses to cover the higher costs, so customers will be the first to feel the changes.

"If the project is approved, the additional fee will increase the total cost of the trip. As the price of travel increases, it is likely that the service will become less attractive and the number of users will decrease. As the customer base shrinks, it may be necessary to make a decision to reduce the existing fleet Klaipėda or even stop operations during the off-season", says S. Aliukonis, head of "Bolt Drive" in Lithuania.

CityBee manager G. Januskaitė-Karvelienė adds that the reduced car park will cause inconvenience to customers. Research shows that consumers' choice to use ride-sharing services is driven by convenience - how close an available car is to their location.

"The greater the availability of car-sharing services, the greater the likelihood that residents will abandon their own cars." As the number of available cars decreases or the distance from the city center decreases, the number of customers will decrease. It is likely that in the long run it will be difficult to maintain the activity", thinks G. Januskaitė-Karvelienė.

Invites to find a compromise

According to car sharing platforms, in recent years Klaipeda was open to providers of innovative and sustainable mobility services. The applicable tax exemptions have attracted sharing providers and promoted sustainable mobility in the city.

Representatives of sharing services say that if the exemption is removed, development in the city may slow down, and operations may even have to be stopped.

"We hope that in cooperation with Klaipėda city municipality we will find a common solution that supports sustainable solutions in the city", says S. Aliukonis, head of "Bolt Drive" in Lithuania.

TAGS:City beeKlaipeda
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