Tightened emissions rules could drive up ride-sharing fares in Prague

Prague city councillors have approved a new ordinance requiring all taxi and ride-hailing vehicles to meet strict emissions standards by 2027, a move that could increase baseline fares for passengers.

Under the regulation passed on Thursday, only vehicles meeting at least the Euro 6d emissions standard, typically cars first registered in 2021 or later, will be permitted to operate as taxis from August 2027.

The measure is a response to the city’s rapidly aging taxi fleet, which has seen its average vehicle age jump from four years in 2017 to over ten years today.

While the city approved the 2027 rule, a more controversial proposal to mandate only electric or hydrogen-powered taxis from 2030 was rejected.

Members of the Spolu and ANO parties blocked the zero-emissions mandate, arguing that the city’s charging infrastructure is not yet prepared and that the cost would disproportionately hurt smaller independent drivers.

The decision could have a significant economic impact on the ride-sharing market. Since 2017, the number of licensed taxis in Prague has grown from 3,000 to over 16,000, with much of that growth driven by part-time drivers using older personal vehicles.

Forcing these drivers to upgrade to newer, more expensive cars is expected to reduce the pool of available drivers and push fares higher.

“Even if an operator were to purchase a new internal combustion engine vehicle today, it would clock up an average of over 350,000 kilometers in four years and reach the end of its service life,” Jaromír Beránek, Prague’s Deputy Mayor for Transport, said in a press release.

He admitted the shift could add "a few crowns per kilometer" to operating costs but suggested high competition might prevent these from being fully passed to passengers.

While Prague officials say competition may limit fare increases, analysts warn that stricter emissions standards could raise operating costs for drivers with older vehicles, potentially putting upward pressure on fares.

Similar patterns have appeared in other European cities: London’s ULEZ and congestion charges increased fleet renewal costs for black cab and private hire drivers, and Paris’ low-emission zones have required taxis to upgrade vehicles, affecting operating costs even with fixed fare structures.

These examples suggest that Prague’s Euro 6d mandate, while aimed at cleaner air, could ripple through the taxi and ride-hailing market.

It may reduce the availability of older, lower-cost vehicles, and the high capital costs of fleet renewal could potentially be reflected in the dynamic pricing models used by major platforms.

For the latest news on taxing and ride sharing pricing in Prague, read here.