Taxi firms hold drivers accountable for accidents, licenses

Many of Saudi Arabia’s taxi companies force their drivers to pay for vehicles damaged in accidents whether they are at fault or not, refuse to transfer sponsorships and allow drivers to operate taxis without proper licensing.
The practice of having drivers pay for damaged taxis proves to be a particular hardship since most operators earn no more than SR 150 a week while paying SR 170 a week for their employers’ share. Moreover, drivers are fired if they are unable to pay for vehicle repairs, according to numerous drivers interviewed by Arab News.
“I was involved in a traffic accident and was forced to pay SR 750 for the damage,” said Ali Bakr, a Pakistani driver. “My employer has his own car workshop to repair his taxis. But I still had to pay the repair cost of the other party involved in the accident.”
Most taxi companies own automotive workshops to conduct repairs and perform regular maintenance on tires, brakes and air-conditioning.
There are an estimated 43,000 taxis and 28,000 drivers in the Kingdom. There are as many as 1,357 Saudi companies that own or co-own taxi services. Forty percent of all taxis operate in Riyadh, while Jeddah boasts a 33 percent share of the Kingdom’s taxis. The Eastern Province has a 17 percent share with 5 percent spread across the rest of the country. Most drivers are Indian or Pakistani, while Saudis make up for less than 30 percent of all taxi operators.
Drivers also say that taxi companies are reluctant to transfer sponsorships of their expatriate drivers, which is in violation of the labor laws. Expat drivers say they often skirt checkpoints to avoid Passport Department authorities and police, fearing they could be deported. In addition, drivers complain they are fined for not possessing a proper license.
“My employer told me he cannot currently transfer my sponsorship due to some obstacles with the labor office,” said Mohammad Saddeeq, a Sudanese driver, adding, “It is hard to work with risks, especially when I may be stopped at a checkpoint. My license is still private and it is not valid for taxi driving. I was fined several times because I do not have a special license for taxi driving.”
Fines often reach SR 300 for various violations and are not paid by the companies.
At the same time, Saudis prefer to work as independent, unlicensed drivers because taxi companies do not provide attractive benefits. As a consequence, jobs fall to drivers with little or no experience in driving.
“There was a study on how to develop taxi companies, but the obstacle is that Saudis do not want to work as drivers for these companies,” Saeed Al-Bassami, vice president of the national transportation committee at the Saudi Council of Chambers of Commerce, told Arab News. “Many Saudis want to have their own private limousine service funded by loans from the Saudi Credit and Saving Bank.”
According to Nitaqat figures, the Saudization percentage in the taxi sector is 12 percent. However, since Saudis avoid working for taxi companies, owners cannot benefit from Nitaqat.
“We cannot develop this sector without a high Saudization percentage,” Al-Bassami said. “There are more than 10,000 jobs available in the sector, but we only have 17 Saudis ready to work as drivers.”
Abdul Hadi Al-Qahtani, former president of the taxi committee at the Jeddah Chamber of Commerce and Industry, said in a previous interview with Arab News that “we proposed establishing the company that eventually incorporate 260 taxi companies within five years. However, the Transport Ministry said in order to approve the project, the company must be 100 percent nationalized.”