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Licensed drivers VS Taxi companies

How does taxi transport in Montenegro work, who are private entrepreneurs and what are the companies? How to decide which model of transportation is your best option? Is there any significant difference between them? Is there illegal taxi transportation in Podgorica and or in the rest of Montenegro?

These are some of the questions we have heard from our colleagues from various European countries over the last couple of years, who came to Montenegro for a vacation and were in communication with our drivers. That's why we decided to try to explain through this blog and get closer to you how it works in Montenegro.

 

In the area of taxi transportation in the territory of Podgorica and all of Montenegro, there are two registration models for performing this service. The activity can be performed by private entrepreneurs, registered as taxi drivers, and companies that are registered for taxi transport. Private entrepreneurs are the oldest form of registered taxi transport, not only in Montenegro, but also wider. In this case, this specifically means that a person who is a private taxi operator is a mini-company. Driver registered as a private entrepreneur has his own license, issued on his name and surname, and license is non-transferable to a third party. Entrepreneur is registered in all institutions, Tax Administration, Commercial Court, Health Fund, Pension Fund, etc. He is the personally owner of the car that drives and he himself bears all the costs of purchasing vehicles, maintenance, fuel, washing, etc. Private entrepreneur does not have a precisely determined working time, but he creates his working day depending on business policy and private obligations. He himself pays contributions for the pension and health fund, as well as the tax on performing activities.

 

Companies in Podgorica, registered for taxi transportation, work a little differently. In this case, we have only one person who owns 20, 30, 50 or more vehicles. His company has only one taxi license issued to the company, and for the vehicles are issued sub-licenses. In companies, there are drivers who usually work one shift (usually 10 hours with a half-hour break) and the vehicle is usually served by two drivers. Drivers work for the salary that depends on the amount of gross cash they have charged. Their salary is usually amount up to 25-30% of the total charge. Unlike private entrepreneurs in this case all money daily is going to the owner of the company, and he is covering all expenses for fuel and taxes, together with driver salaries. So what are the differences and how to recognize who is an entrepreneur and who is just a driver in the company.

 

This is not easy because both drivers drive a car with regular taxi labels. Basically, if you see more cars in the streets of the city of exactly the same brand, the same door markings, and identical boards on the roof, they mostly belong to a business taxi association, not to entrepreneur. The only difference that you need to take care of is security. Private entrepreneurs are professional taxi drivers. When registering their activities, they must prove it by certain certificates. Professional drivers, entrepreneurs, must, upon extension of their license, issue certificates of two different courts, a misdemeanor court and a basic court, that they have not been punished and that they are not in the criminal record. For drivers in associations, there are completely different rules. They must only have a regular driver's license, and that they are not younger than 21 years of age. They are often seasonal workers who do this job in the absence of someone else.

If a safe trip is your priority, then do not think. Private entrepreneurs simply have to be your first choice.

 

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