Licensed taxis vs. unlicensed transport – What is the difference?

In recent years, there has been an interesting change in the way we travel, especially in larger cities such as Sofia, Plovdiv, Varna, and Burgas. Alongside traditional taxi services, new platforms have emerged on the market that offer passenger transport via mobile apps and private cars. For consumers, this seems like another convenient alternative, but in practice, the differences between licensed taxi services and those offered by various platforms are significant.

Although at first glance both offer a similar service—transportation from point A to point B—they differ in terms of organization, level of regulation, passenger safety, and the responsibility they assume.

In this article, we will take a detailed look at the differences between the two forms of transport, why licensed taxis are the safer choice, and in which situations it is not worth compromising on safety and responsibility.

What are these platforms and how exactly do they work?

These types of services are based on mobile applications that connect passengers with private drivers who use their personal vehicles to transport passengers. Unlike licensed taxi services, no professional experience, taxi registration, medical assessment of the driver, technical compliance of the vehicle, or adherence to municipal tariffs are required. Almost anyone can register as a driver and start accepting orders.

Once the customer enters the starting point and destination in the app, the system calculates an approximate price and searches for a driver nearby. Upon confirmation, the trip can begin. It is carried out with the driver's personal car and a pre-agreed fare—without a taximeter, sign, or regulated fare. Payment is made directly between the customer and the driver, most often in cash.

This model allows almost any driver with a personal car to register and start accepting orders without going through a licensing or training procedure, as required by taxi companies. For the consumer, this means a lower price, but also significantly less predictability and protection in the event of a problem.

What do we get when we order a licensed taxi?

Taxi services, as we know them, are regulated and controlled activities subject to specific rules and legal requirements. Every company offering taxi transportation must have the necessary licenses, and every driver must have a certificate of competence and qualification. This is not just "driving for pay," but a professional service with clearly defined standards.

Driver requirements

When you order a licensed taxi, you get transportation from a driver who:

• Has a valid taxi driver's license;
• Has passed the necessary medical examinations and psychological assessment;
• Has a valid criminal record certificate proving that they have not been convicted;
• Has not been involved in any serious traffic accidents or violations in the last year;
• Is at least 21 years of age;
• Has passed special exams administered by the Road Transport Administration, demonstrating knowledge of their rights and those of passengers;
• Has excellent knowledge of the city in which they work, including main streets, neighborhoods, public institutions, and transportation hubs. This allows them to respond quickly and confidently, even in unexpected situations.

Vehicle requirements

The vehicle you will be traveling in is also subject to strict requirements. Licensed taxis are:

• Clearly marked and permanently painted yellow;
• Equipped with a taxi sign and a unique number, most often located at the rear or side of the vehicle;
• Equipped with a taximeter that calculates the actual price in real time, based on the distance traveled and time;
• Subject to regular technical inspections and maintenance.

In addition, each trip is officially registered, and at the end of the trip, the customer is entitled to receive a receipt with details of the distance traveled, time, and price. This provides transparency and the opportunity for fairness in the event of a dispute or unfair treatment.

Working hours are also regulated - drivers have fixed shifts and mandatory breaks so that they are rested and alert while on duty. This significantly reduces the risk of fatigue and mistakes on the road, which are common in unregulated transport.

The element of responsibility is no less important. When you choose a licensed taxi company, you know who is behind the service - the name of the company, the registration of the vehicle, and the specific driver who performed the transport and who is subject to control. This means that if there is a problem, you know who to turn to. You are not just a passenger in someone's private car, but a customer of an official transport service.

What are the differences and risks associated with unlicensed platforms?

Although they offer convenience and often lower prices, it is important to realize what is missing compared to a licensed taxi service. The biggest difference is not in how the car looks or whether it is properly marked, but in the responsibility, regulation, and security behind each trip.

1. No regulations, no control

Drivers on the platform are not required to undergo training, qualification exams, or medical examinations. Anyone with a driver's license and a car can register on the app and start accepting customers. This means that someone with minimal experience, a lack of professional etiquette, or even a questionable history could be behind the wheel without any prior screening.

2. Lack of fixed prices and transparency

While licensed taxis have prices set by municipal regulations and clearly displayed on the meter, unlicensed transport services have dynamic fares that are not always transparent and can vary significantly depending on the time of day, traffic conditions, or even the driver's subjective assessment. There is also no fiscal receipt or document for the service provided.

3. Unclear origin of the vehicle and technical condition

While taxis undergo mandatory inspections and checks, private cars are not subject to additional controls. No one guarantees the technical condition of the vehicle, which may be old, poorly maintained, or unsuitable for passengers—especially in bad weather, on long routes, when traveling with children, or with extra luggage.

4. There is no guarantee of the driver's health

One of the most serious but often overlooked dangers of unlicensed transport is the lack of any control over the physical and mental condition of the driver. There is no mechanism to check whether the person behind the wheel is overworked, incompetent, or under the influence of alcohol or drugs. This poses a serious risk to both passengers and other road users.

5. Limited rights in case of accidents and disputes

If something goes wrong during the ride—a delay, aggressive behavior, refusal to reach the destination, failure to comply with the agreement—your options for response are very limited. The platform often acts as an intermediary but does not bear any real responsibility. There is no institution that monitors compliance with consumer rights or to which you can submit a complaint.

In which situations is it more reasonable to choose a licensed taxi?

Although platforms such as Maxim seem attractive with lower prices and convenience through a mobile app, there are a number of real-life situations in which choosing a licensed taxi is far more reasonable, safe, and predictable.

• When traveling with a child, elderly person, or pet;
• For late or nighttime trips;
• When you have valuable luggage or are traveling for an important occasion;
• For work or business trips;
• When you simply want to travel safely and peacefully.

The choice is yours, but there is no alternative to safety

Nowadays, there are more transportation options than ever before—and that's good news. Unlicensed transportation services and the platforms behind them offer flexibility and affordability that meet the needs of some consumers. But with this freedom comes the responsibility to decide for ourselves what we are sacrificing in exchange for a lower price or a quick arrangement.

While this form of transportation connects passengers with private drivers and relies on an informal approach, licensed taxi services offer clearly regulated service, verified drivers, and a predictable pricing structure. In situations that require precision, responsibility, and security, choosing a taxi is not a luxury but a sensible necessity.