Have we solved the taxi problem in Milan?

As we noticed during the last Design Week, which set the record for the highest number of visitors in the event's history with over 360,000 visitors and 1125 events at the Fuorisalone, there aren't enough taxis circulating in Milan. On rainy days, during Fashion Week, football matches, and other major events, there is general chaos in the city, often exacerbated by the lack of public transportation. For this reason, in March, the Municipality launched a tender to assign 450 new taxi licenses by the first half of 2024. The tender received the last applications on April 30th, and, according to statements from the involved institutions, more than 700 requests were received, which will be reviewed in the coming weeks according to the necessary requirements for allocation. With 450 new licenses, the municipality aims to increase the number of taxis by almost 20% in the city, currently standing at 4,853.

Why are there few taxis in Milan?

When the selection of which of the 700 applications can proceed to a further verification stage, candidates will have to face a written exam on road code and public car laws. The taxi driver's level of knowledge about the major tourist locations in the area and the English language will be checked, and the final ranking will decide which candidates will be entitled to one of the 450 licenses: 300, of ordinary type, will cost the future taxi driver €96,500; 50 will have a 20% discount (€77,200) for those with cars equipped for the transport of people with disabilities; 50 will be dedicated to taxi drivers working evening, night, and weekday shifts for €67,550, and the last 50 will have a 40% discount (€57,900) for those falling into the last two categories. By law, the proceeds from the sale of licenses will be deposited into a municipal fund to be redistributed to Milan's taxi drivers. Addressing the problem of the lack of taxis in Milan is more difficult than it seems - according to the Wall Street Journal, which dedicated an article to it, the phenomenon significantly contributes to the country's economic deterioration. Like in many other Italian cities, it is known among taxi drivers that the assigned licenses are few, but they themselves struggle against their increase for fear of loss of earnings or even that the value of their license decreases. According to the latest data from the Transport Regulation Authority, there are about 23,000 Italian taxi drivers who own a registered license (excluding Uber). Thanks to the limited number of licenses, there is a rather profitable buying and selling market among taxi drivers, which could be compromised if the Municipality decides to further increase their number.