SLOBODAN FRANETA

Time for Ubernization of Montenegro

Open war against free market
October 3rd, 2017 in Podgorica
The Board of Economics, Finance and Budget of Montenegro adopted new changes in law
related to the transportation and road traffics. New changes are product of Ministry of
Transportation and Government of Montenegro. It’s their attempt to regulate taxi companies
and to secure better position (or even monopoly) for public transportation.
Montenegro, as one of the youngest European countries, does not have developed public
transportation infrastructure. Instead, Montenegro was relatively open and barrier free for
private enterprises in transportation industry. The result was competitive market in
transportation industry, especially when it comes to taxi companies, where the prices were
dropped to the lowest 0.4 euro per kilometer in Podgorica, capital of Montenegro. In such
environment, taxi companies especially, were motivated to provide better and innovative
services to keep their clients. The constant investments in better vehicles and better conditions
for passengers, secured to clients ultimate pleasure and privacy that public transportation could
not provide.
Now, with new law, Government of Montenegro tries to put more regulations and to reduce
number of taxi vehicles and private enterprises in this industry. Under populistic campaign and
care for environment Government of Montenegro tends to create an atmosphere where it is
acceptable to regulate market and lifestyle for common good. The nonsense of the new law is
greatly visible through the following part of the new law:
“Auto-taxi transportation is performed by conditions that are written in this law. Closer
conditions, organization, optimal number of auto-taxi vehicles, minimal number of auto-taxi
vehicles for persons with disabilities, minimal and maximum prices, are under control of local
governments bodies”1
The new law not only will control transportation industry but will also make difficult for
citizens who use services of private enterprises to reach their destinations on daily basis. The
frequency of using private enterprises for transportation is relatively high and people in
Montenegro prefer using taxi-vehicles for doing local activities and businesses. This is
especially true for Podgorica, capital of Montenegro which is also administrative and business
center of Montenegro with near 200 000 inhabitants and infrastructure that is still under
construction.
Being familiar with Montenegrin mindset and their desire to trick the system, Uber seems to
be the most logical and expected solution for the problem of the regulations. The problem that
appears is that Montenegrins are not familiar with such innovation, as so far there were not
needs for it. Prices in transportation industry were on its lowest and Uber drivers probably
would not be able to compete with it. Now when Government of Montenegro is trying to
regulate the market, it may be perfect timing for Ubernization. It could be the best counter-
strike to the regulations and controlled market. In essential Uber drivers could reduce the prices
of future private transportation services and could be the only decent competitors with public
transportation services.

1
Suggested law for transportation and traffic road, p. 31, Article 87,
http://zakoni.skupstina.me/zakoni/web/dokumenta/zakoni-i-drugi-akti/254/1536-9650-17-1-14-1.pdf

| b/e: sfraneta@luchainstitute.org | p/e: slobofraneta@gmail.com | t: +382 (67) 013 440 |

 SLOBODAN FRANETA

So far sharing economy platforms such as Booking.com and AirBnB had enormous success in
Montenegro because they opened an opportunity for many to easily share their properties, earn
money and avoid taxes and bureaucracy.
It may be the time for Uber to become new sharing economy platform that will be developed
in Montenegro. It would be ideal power demonstration of the free and deregulated market. With
current signals and ideas that are coming from Government of Montenegro, it seems we won’t
wait for long to see how the things will develop in future. It’s for sure that Montenegrins should
start learning about Uber as it may be the only solution for cheaper private transportations in
their daily routines. Uber idea has never been so close to Montenegro like it is today.
Ubernization may be the real thing for thousands of Montenegrins.

| b/e: sfraneta@luchainstitute.org | p/e: slobofraneta@gmail.com | t: +382 (67) 013 440 |