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Home Business & Finance Economic Policies

Violent Taxi-mafia hotspots hurting Sri Lanka tourism, ride-hailing firm says todayheadline

March 10, 2025
in Economic Policies
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ECONOMYNEXT – Violent obstruction of app-based taxis at tourist hotspots by local taxi ‘mafias’ is escalating, harming drivers and their vehicles and also Sri Lanka’s image as a safe tourism destination, a ride-hailing company has said, calling for urgent action.

PickMe, a Sri Lanka based company, there were over 30 incidents against drivers on its platform over the past 12 week.

“Several of these incidents included not just vandalism and causing damages to vehicles but also physical injuries sustained by app-based ride-hailing drivers,” Pick Me said in a statement.

“To worsen the situation, many of these incidents involved foreign tourists seeking the convenience of app-based transport solutions during their holiday.

“These incidents not only put drivers at risk but also threaten the country’s reputation as a safe and welcoming destination for travelers.”

Taxis that bring tourists to hotspots increase business for hotels and local businesses, Jiffry Zulfer, CEO of PickMe.

“This resistance toward app-operated transport technology services stems from a misguided belief that these platforms are taking business away from traditional operators,” Zulfer said in a statement.

“In reality, software-driven solutions help to bring tourists into their areas from far off locations, creating opportunities for local businesses.

“Traditional operators on the other hand, are most often not in a position to bring in tourists to their areas, due to limited accessibility and higher operational costs.

“It is therefore necessary to understand that instead of viewing technology driven transport as competition or even a threat, it is actually a system that makes the overall industry more efficient.”

PickMe says local as well as tourists are using its platform due to lower fares, convenience and ability of friends and relatives to track their movements.

“Unlike traditional taxis, which often rely on negotiated, fixed, or meter-based pricing, app-based services use dynamic, data driven pricing resulting from the large efficient marketplaces they’ve created, with the advantage of technology,” the firms said.

“For tourists, this pricing model is a game-changer that provides reliability, and safety in an unknown terrain. Knowing the fare in advance eliminates the need for negotiations or concerns about overcharging—issues frequently reported with local taxis.

“In Colombo, for example, traditional meter rates average LKR 80–90 per kilometer, but non-metered taxis often charge significantly more, particularly for unfamiliar travelers.”

Taxi-drivers who use ride-hailing technology are also Sri Lanka citizens, Zulfer said calling for law enforcement authorities to take action.

“It must be understood that drivers who opt for app based technology platforms are citizens with the same rights as any other individual. They have the right to move and work freely across the country,” Zulfer asserts.

While these two driver groups serve customers with different choices and operate within distinct ecosystems, both have a place in Sri Lanka’s transport landscape, he said.

In recent weeks videos have gone viral on Sri Lanka’s social media showing incidents where some three-wheeler drivers are holding tourists for ransom in the evening from off-beat archaeological sites and newly emerging tourist sites demanding high prices.

In addition, tourists are also overcharged through organized collusion, where a ride from the train or bus station to a hotel, costs as much as a day’s stay charged on a booking engine, according to some who have faced the problem.

Until the recent incidents and the appearance of so-called ‘taxi-mafias’, Sri Lanka’s tuk-tuk drivers in particular have won praise from tourist for being helpful and there are large number of youtube and tiktok videos on similar themes. (Colombo/Mar11/2025)

Tags: firmhotspotshurtingLankaridehailingSriTaximafiatodayheadlineTourismviolent
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