We have witnessed various techniques used by commodity and service providers to maximize profit. The most commonly heard of these has been intentionally storing up commodities to create shortage in the market and subsequently sale it once it hits a very high price. Looking into a similar contemporary profit maximization move that has caught the city by storm, Society this week has picked up the issue of taxis that break down long distance transport into multiple fares.

A profit maximizing scheme

As a major transportation facility in Addis Ababa, mini-buses serve a huge portion of the city’s residents making them part of the everyday life of most city residents. Their big role in keeping Addis life normal was evident during the post election saga during which they were on a strike. People were in big trouble to commute from a place in the city to another. It could be said that their return from strike saw the best time between mini-bus drivers, touts and passengers.
The majority of the rest of the time in the mini-bus passenger affair is marked by a hate- hate relationship. Most passengers complain of the verbal abuse and over charging of touts and drivers while the latter express their dismay over the unreasonable, stereotypical and even illegal comments and requests of the former.
Though such claims have always been there, one fast spreading trend that has to do with mini-buses is the break down of long distances into multiple fares. What basically happens in such a case is that a long distance is broken down into two or three short distances for the sake of increasing transport fares. Accordingly, a mini-bus on the route from Bole Medhanialem to Piassa, a 1.85 br journey, starts by calling out for passengers to the area popularly known as ‘Haya Hulet’, a 65 cents journey; then extends the route to Piassa, a 1.75 cents journey from Haya Hulet. By breaking down the long journey into two smaller ones, the mini-buses make 20 cents more than the tariff set by government. In the worst of cases a long distance might even be broken down into four short distances, leading to the payment of up to three birr for what normally is a 1.75 birr journey.
That surely is an unfair business direction to take and I would say the relevant government bodies should take swift actions to stop it. We hear of a consumer association in the country but I am not sure if it really is up to the task required of it.
Up on my attempts to figure out the cause for such a scheme by taxis, I found out two major ones. The first is that the taxi fares set by the government are so low that they do not ensure profitability. This reason is largely raised by taxi drivers. The second, on the other hand, has to do with the various road upgrading and construction projects in the city. This argument contends that the projects have kept some major roads out of use, resulting in traffic jams that in turn lead to lots of passengers waiting for taxis to arrive. With a large group of passengers to choose from, the taxis come up with a profit maximizing scheme.

What's your opinion on taxis that break down long distance
transport in to multiple fares?

I think breaking down long distances is yet another abuse we get from taxis. I think it is a selfish move on their part but we shouldn’t have fallen to it so easily. We should stand for our rights and collectively refuse to pay. All the touts do is set the price orally and we submit to it. That is so shameful of us.

Belachew Yitbarek, regular taxi passenger

No rational being would be glad to be overcharged. We do so only because that is the option we are left with. I think the government is to blame as it only comes up with laws but fails to ensure their enforcement. If a journey is legally expected to cost 1.20 birr, then it is the government’s duty to ensure that the law is being implemented.

Lulit, college student

I think the taxis are the first ones responsible for displaying such a morally wrong behaviour. Especially in a traditional culture like ours, telling people you can only take them a short distance and then turn against your word to extend the journey just to make them pay more money is disgracing.

Mekonnen Melaku, teacher