Latvia remains the only country in the European Union where offering taxi and ridesharing services with leased vehicles is prohibited, according to Jevgeni Kabanov, president of transport and delivery platform Bolt, in an interview with news agency LETA.
Kabanov stated that this restriction represents a major obstacle for drivers entering the Latvian market. “There is significant growth potential in the Baltics, including in terms of regulation,” he noted. “But one of the biggest challenges in Latvia is the ban on using leased vehicles for ridesharing or taxi services. This creates a substantial barrier for drivers wanting to join the sector,” Kabanov emphasized.
According to Kabanov, Latvia might be the only EU country with such a blanket prohibition. “Some countries impose different insurance requirements, and in others the leasing terms differ, but nowhere else is it outright banned,” he added.
Despite the regulatory hurdles, Bolt’s services continue to grow across the Baltics, as more users shift from private car use to shared transport and micromobility options, contributing to urban development, Kabanov noted.
Meanwhile, the Latvian Ministry of Transport has submitted draft amendments to the Road Transport Law, which would allow leased vehicles held by private individuals to be used for passenger transport services. The changes are currently under coordination and review.
The ministry explains that a 2023 study commissioned by Bolt and 2024 policy discussions identified the urgent need to increase the number of drivers and vehicles available for commercial transport.
The shortage, they argue, negatively affects both price and service quality.
According to Bolt’s internal data, over 100 000 ride requests go unfulfilled every month across the Baltics due to a lack of available drivers. Consequently, average ride prices in Latvia are higher than in neighbouring countries.
The current law allows passenger transport services to be provided only with vehicles owned or fully possessed by the operator. This excludes leased cars, making it illegal for private individuals with leased vehicles to work legally in the sector.
The ministry argues that amending the law will expand the pool of eligible drivers, boost service availability, and accelerate the renewal of Latvia’s vehicle fleet.