Renting a Car for Taxi Work in Estonia—Is It Really Worth It?

If you’re thinking about driving a taxi in Estonia—whether full-time or to boost your income on the side—you’ll quickly face an important decision:

Should you rent a car, or use your own?

There’s no one-size-fits-all answer. It all depends on your situation, your goals, and how much risk you’re willing to take on. Let’s walk through what you need to know if you’re considering renting a car for taxi work in Estonia.

Estonia’s taxi scene: what’s the real story?

Estonia has embraced app-based mobility faster than most European countries. Back in 2017, we became the first EU country to officially legalize ride-hailing services like Bolt and Uber. Since then, the number of people working as platform drivers has grown steadily, especially in Tallinn.

But with opportunity comes responsibility. According to the Estonian Traffic Insurance Fund (LKF), app-taxi drivers are statistically involved in twice as many accidents as traditional taxi drivers. Long shifts, city traffic, and heavy reliance on GPS apps can increase risks on the road.

Bottom line: if you want to succeed—and protect your earnings—you’ll need to make smart decisions from day one. That starts with your car.

Renting a car: how it works in Estonia

If you don’t have a car that fits platform requirements—or you simply don’t want to put wear and tear on your own vehicle—renting can be a good starting point.

Several local companies offer rental options designed specifically for Bolt, Uber, and other platform drivers.

Typically, a rental package includes:

• A car that meets platform requirements
• Taxi license and vehicle card
• Maintenance and repairs
• Basic insurance

Some companies even handle the service provider card paperwork for you (which you’ll need to operate legally). If not, you can apply through the local municipality (official info here).

Expect rental costs to vary depending on the car model, insurance type, and how flexible the agreement is.

Tip: Always check if there are any mileage limits or extra charges hidden in the contract.

Is renting really worth it?

Like most things, it depends on your situation. Let’s look at the trade-offs:

Pros of renting:

• Low upfront cost: No big investment needed to get started.
• No maintenance headaches: Repairs and servicing are usually included.
• Flexibility: Easier to switch vehicles or stop driving if your plans change.
  

Cons of renting:

• Ongoing fixed costs: Rental payments add up, even during slower weeks.
• Less control: You might not get your ideal car or preferred equipment.
• Profit margin pressure: High rental costs can squeeze your earnings, especially if you’re not driving full-time.
  

If you’re planning to drive 40+ hours per week, buying your own car may be more cost-effective in the long run. But if you want to test the waters, keep things flexible, or avoid risk—renting makes a lot of sense.

What else should you budget for?

Beyond the rental fee, keep these regular costs in mind:

• Insurance: Taxi insurance premiums are higher than for private cars—because the risk is higher. The good news? Cachet offers flexible coverage for app-based drivers, based on your actual working hours.
• Fuel: How much you’ll spend depends on your car’s fuel efficiency and your driving style. Choosing a hybrid or efficient petrol engine can really make a difference.
• Platform commission: Bolt, Uber, and others typically take a 15–25% commission on each ride. Factor that into your earnings.
  

Staying on the right side of the law

In Estonia, all taxi drivers—whether traditional or app-based—must meet certain requirements:

• Valid taxi license
• Vehicle card
• Service provider card
• Compliance with the Public Transport Act (full rules here)

One thing to be aware of: While there’s no official Estonian language requirement yet, the Language Inspectorate has raised concerns about non-Estonian-speaking drivers.

Being able to communicate confidently with passengers—especially about prices and routes—can improve your ratings and avoid misunderstandings.

Final thoughts

Renting a car to work as a taxi driver in Estonia can absolutely be worth it—if you approach it with a clear plan

For part-timers, newcomers, and those who value flexibility, renting offers a low-commitment way to get started.

For full-time drivers who are in it for the long haul, buying might eventually be a smarter financial move.

Whichever path you choose, make sure you protect your time, your income, and your peace of mind with insurance that actually fits how you work. Cachet was built for exactly that.

Need smarter insurance for your app-taxi journey?
Let’s talk.