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The future of the ride-hailing and micromobility market in Ukraine: regulation, safety, and infrastructure

27/ 02/ 2025
  The European Business Association held a roundtable discussion on Ride-hailing and Micromobility: Ukrainian Market Perspectives, where representatives from the government, business, and experts discussed key challenges and opportunities in these sectors. The discussion covered the regulation of the ride-hailing market, as well as updates to traffic rules for micromobility and their alignment with modern realities. Serhii Derkach, Deputy Minister for Communities and Territories Development of Ukraine, stated that the Ministrys key priorities include introducing uniform rules for commercial transport, improving safety standards, simplifying licensing procedures, and regulating the responsibilities of business entities in the taxi and ride-hailing sectors. The issue of taxation was also raised, although Derkach noted that this does not fall within the Ministrys competence. However, discussions with the Ministry of Finance and tax authorities are ongoing. He emphasised the importance of ensuring the technical reliability of vehicles through mandatory technical inspections. Regarding technology, Derkach highlighted the challenges posed by ride-hailing platforms. Clear market regulation is needed, particularly concerning driver licensing. He expressed confidence that most of the industrys issues could be resolved through proper licensing and ensuring drivers meet certain standards, especially in the ride-hailing sector. Safety remains a crucial aspect for both drivers and passengers. Derkach also addressed the issue of curfews, stressing that this matter is not within the Ministry’s jurisdiction but is managed by military administrations. Nevertheless, a potential solution could be allowing taxis to operate along designated routes during curfew hours to ensure access to critical locations, such as railway stations, while restricting non-essential trips. Another important aspect is the creation of a registry of platforms and the establishment of clear accountability criteria to guarantee transparency and safety in the transport market. Derkach also emphasised the need for a balanced regulatory approach that considers both market participants interests and urban infrastructure development. Yevhen Zborovskyy, Deputy Head of the State Service of Ukraine for Transport Safety, called for constructive cooperation with businesses in the transport sector. He noted that Ukrtransbezpeka operates within the current legislation, which does not yet provide a separate definition for ride-hailing. As a result, such activities either fall under the taxi category or are considered unlicensed. Each year, around 1,000–1,100 violations in passenger transportation are recorded, mostly following complaints about illegal carriers. At the same time, obtaining a licence is an accessible and highly digitalised process, which enabled the issuance of approximately 800 new licences last year. The primary priority of Ukrtransbezpeka is passenger safety. Zborovskyy emphasised that if a driver completes thousands of trips via a mobile app, this is already a professional activity that should comply with relevant requirements. In particular, it is crucial to monitor drivers working hours, improve passenger insurance coverage, and ensure fleet renewal. He encouraged dialogue, stressing that the agency does not aim to create obstacles for businesses but rather seeks to facilitate their development within safe and comfortable conditions for both drivers and passengers. Serhiy Pavlyk, General Manager of Bolt, stated that regulating the passenger transport market is necessary and highlighted the company’s active support for this process. He shared the results of an international study conducted in 2024, covering 25 countries and over 40,000 drivers. The research revealed that the ride-hailing market is rapidly expanding, with young people being its primary users. More than 78% of drivers are under 44 years old, and for most of them (76%), the main reason for choosing this sector is the flexibility of working hours. While some drivers work full-time, many combine it with other employment. A unique feature of the market is that two-thirds of drivers use multiple platforms to increase their earnings. Before the war, around 300,000 drivers worked in this sector in Ukraine, while current estimates range between 150,000 and 250,000. Pavlyk noted that despite the lack of regulation, Bolt already provides insurance for all trips, which is crucial for ensuring the safety of both passengers and drivers. He advocated for a gradual introduction of market regulations, with potential transition periods in line with international practices. The key aspects of regulation should include safety, transparency, and insurance. Pavlyk expressed confidence that now is the best time for a systematic approach to regulating the industry. Yuliya Malich, Senior Public Policy Manager of Bolt West Asia and Ukraine, emphasised the company’s support for establishing a working group to simplify licensing conditions. The main goal is to increase the number of transport providers with appropriate licences and streamline the process of obtaining them. She also highlighted the need to develop regulations not only for drivers but also for platforms, which is a standard practice in many countries, including Poland. In such systems, platforms are included in an official registry and receive licences that can be revoked in case of violations. Yuliya pointed out the shift in consumer habits: most trips are now carried out via apps such as Bolt, Uklon, and Uber rather than traditional taxi services. She urged consideration of a platform registry with clear market access criteria to ensure transparency and service quality. She also emphasised the need for changes in traffic regulations, particularly within the framework of Draft Law No. 3023. Yuliya stated the company’s willingness to contribute to regulatory development and support legislative initiatives. Additionally, she proposed exchanging experiences with other countries where effective regulations for this sector are already in place. During the panel discussion on Regulation of Light Personal Electric Vehicles, the importance of regulating the use of e-scooters, segways, and similar vehicles— which have rapidly gained popularity in Ukraine—was addressed. Oleksiy Biloshytskyi, First Deputy Head of the Patrol Police Department, stressed that Ukraine recently defined light personal electric transport in legislation, marking a significant step towards its regulation. However, the absence of clear traffic rules for these vehicles creates a legal vacuum, as there is no defined space where e-scooters can be used. Biloshytskyi also noted that while countries like France and Poland have partially addressed this issue, Ukraine is only beginning the process, and a draft law has been developed but requires further refinement. Other panel participants also shared their experiences in this field. Orest Oleskiv, Deputy Director for Bicycle Infrastructure Development at the Lviv City Council, spoke about the growth of micromobility in the city, particularly the increasing popularity of e-scooters. Oleskiv noted the importance of encouraging micromobility while ensuring the safety of all road users, as conflicts between pedestrians and car drivers frequently arise. Oleksandr Grechko, Head of the NGO Passengers of Kyiv, highlighted the issues related to the use of e-scooters and e-mopeds in Kyiv, particularly traffic violations when couriers use pavements. He called for the swift consideration of Draft Law No. 3023, which aims to regulate safety concerns for both pedestrians and micromobility users. We thank all participants for their constructive dialogue on the regulation of ride-hailing/taxi services and micromobility in Ukraine, ensuring safety for all road users and fostering infrastructure development across the country.

The European Business Association held a roundtable discussion on “Ride-hailing and Micromobility: Ukrainian Market Perspectives,” where representatives from the government, business, and experts discussed key challenges and opportunities in these sectors. The discussion covered the regulation of the ride-hailing market, as well as updates to traffic rules for micromobility and their alignment with modern realities.

Serhii Derkach, Deputy Minister for Communities and Territories Development of Ukraine, stated that the Ministry’s key priorities include introducing uniform rules for commercial transport, improving safety standards, simplifying licensing procedures, and regulating the responsibilities of business entities in the taxi and ride-hailing sectors.

The issue of taxation was also raised, although Derkach noted that this does not fall within the Ministry’s competence. However, discussions with the Ministry of Finance and tax authorities are ongoing. He emphasised the importance of ensuring the technical reliability of vehicles through mandatory technical inspections.

Regarding technology, Derkach highlighted the challenges posed by ride-hailing platforms. Clear market regulation is needed, particularly concerning driver licensing. He expressed confidence that most of the industry’s issues could be resolved through proper licensing and ensuring drivers meet certain standards, especially in the ride-hailing sector. Safety remains a crucial aspect for both drivers and passengers.

Derkach also addressed the issue of curfews, stressing that this matter is not within the Ministry’s jurisdiction but is managed by military administrations. Nevertheless, a potential solution could be allowing taxis to operate along designated routes during curfew hours to ensure access to critical locations, such as railway stations, while restricting non-essential trips.

Another important aspect is the creation of a registry of platforms and the establishment of clear accountability criteria to guarantee transparency and safety in the transport market. Derkach also emphasised the need for a balanced regulatory approach that considers both market participants’ interests and urban infrastructure development.

Yevhen Zborovskyy, Deputy Head of the State Service of Ukraine for Transport Safety, called for constructive cooperation with businesses in the transport sector. He noted that Ukrtransbezpeka operates within the current legislation, which does not yet provide a separate definition for ride-hailing. As a result, such activities either fall under the taxi category or are considered unlicensed.

Each year, around 1,000–1,100 violations in passenger transportation are recorded, mostly following complaints about illegal carriers. At the same time, obtaining a licence is an accessible and highly digitalised process, which enabled the issuance of approximately 800 new licences last year.

The primary priority of Ukrtransbezpeka is passenger safety. Zborovskyy emphasised that if a driver completes thousands of trips via a mobile app, this is already a professional activity that should comply with relevant requirements. In particular, it is crucial to monitor drivers’ working hours, improve passenger insurance coverage, and ensure fleet renewal.

He encouraged dialogue, stressing that the agency does not aim to create obstacles for businesses but rather seeks to facilitate their development within safe and comfortable conditions for both drivers and passengers.

Serhiy Pavlyk, General Manager of Bolt, stated that regulating the passenger transport market is necessary and highlighted the company’s active support for this process. He shared the results of an international study conducted in 2024, covering 25 countries and over 40,000 drivers. The research revealed that the ride-hailing market is rapidly expanding, with young people being its primary users.

More than 78% of drivers are under 44 years old, and for most of them (76%), the main reason for choosing this sector is the flexibility of working hours. While some drivers work full-time, many combine it with other employment. A unique feature of the market is that two-thirds of drivers use multiple platforms to increase their earnings.

Before the war, around 300,000 drivers worked in this sector in Ukraine, while current estimates range between 150,000 and 250,000. Pavlyk noted that despite the lack of regulation, Bolt already provides insurance for all trips, which is crucial for ensuring the safety of both passengers and drivers.

He advocated for a gradual introduction of market regulations, with potential transition periods in line with international practices. The key aspects of regulation should include safety, transparency, and insurance. Pavlyk expressed confidence that now is the best time for a systematic approach to regulating the industry.

Yuliya Malich, Senior Public Policy Manager of Bolt West Asia and Ukraine, emphasised the company’s support for establishing a working group to simplify licensing conditions. The main goal is to increase the number of transport providers with appropriate licences and streamline the process of obtaining them.

She also highlighted the need to develop regulations not only for drivers but also for platforms, which is a standard practice in many countries, including Poland. In such systems, platforms are included in an official registry and receive licences that can be revoked in case of violations.

Yuliya pointed out the shift in consumer habits: most trips are now carried out via apps such as Bolt, Uklon, and Uber rather than traditional taxi services. She urged consideration of a platform registry with clear market access criteria to ensure transparency and service quality.

She also emphasised the need for changes in traffic regulations, particularly within the framework of Draft Law No. 3023. Yuliya stated the company’s willingness to contribute to regulatory development and support legislative initiatives. Additionally, she proposed exchanging experiences with other countries where effective regulations for this sector are already in place.

During the panel discussion on “Regulation of Light Personal Electric Vehicles,” the importance of regulating the use of e-scooters, segways, and similar vehicles— which have rapidly gained popularity in Ukraine—was addressed.

Oleksiy Biloshytskyi, First Deputy Head of the Patrol Police Department, stressed that Ukraine recently defined light personal electric transport in legislation, marking a significant step towards its regulation. However, the absence of clear traffic rules for these vehicles creates a legal vacuum, as there is no defined space where e-scooters can be used. Biloshytskyi also noted that while countries like France and Poland have partially addressed this issue, Ukraine is only beginning the process, and a draft law has been developed but requires further refinement.

Other panel participants also shared their experiences in this field. Orest Oleskiv, Deputy Director for Bicycle Infrastructure Development at the Lviv City Council, spoke about the growth of micromobility in the city, particularly the increasing popularity of e-scooters. Oleskiv noted the importance of encouraging micromobility while ensuring the safety of all road users, as conflicts between pedestrians and car drivers frequently arise.

Oleksandr Grechko, Head of the NGO “Passengers of Kyiv,” highlighted the issues related to the use of e-scooters and e-mopeds in Kyiv, particularly traffic violations when couriers use pavements. He called for the swift consideration of Draft Law No. 3023, which aims to regulate safety concerns for both pedestrians and micromobility users.

We thank all participants for their constructive dialogue on the regulation of ride-hailing/taxi services and micromobility in Ukraine, ensuring safety for all road users and fostering infrastructure development across the country.

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