The Reality of Being a Taxi Driver in Estonia: Requirements, Experience, and Challenges

Being a taxi driver in Estonia isn’t just about getting from point A to B. It’s a profession shaped by regulations, digital platforms, and customer expectations. If you’re considering entering the industry, here’s what you need to know—from legal requirements to everyday challenges.

Requirements for Becoming a Taxi Driver in Estonia

1. The Must-Haves: Licenses and Legal Requirements

To operate legally as a taxi driver in Estonia, you must fulfill several requirements:

• Valid Driver’s License: You’ll need a category B license.
• Taxi Driver’s License: Issued by the Estonian Transport Administration,  this license requires a background check and, in some cases, a professional competence exam.
• Vehicle Inspection and Permits: If you operate your own vehicle, it must pass technical inspections and be registered as a taxi.
• Insurance: Compulsory traffic insurance is a must. Cachet offers flexible, usage-based insurance that helps taxi drivers pay only for what they need.

2. Self-Employment vs. Company Registration

Most taxi drivers in Estonia work independently, either as sole proprietors (FIE) or through their own company. This offers flexibility but also means handling taxes and finances yourself.

3. Know the Local Rules

Ride-hailing and taxi regulations in Estonia are strict, covering licensing, fare transparency, and platform-specific requirements. Whether you drive for Bolt, Uber or independently, staying compliant is essential to avoid fines.

4. Language Skills Matter

Speaking Estonian is a key requirement for taxi drivers, as it ensures smooth communication with customers and authorities. In Tallinn and other cities, knowing English and Russian can also be beneficial for serving a diverse customer base.

What Experience is Necessary?

You don’t need prior experience to start driving, but having certain skills will make a big difference:

1. Driving and Navigation Skills

Knowing city layouts, peak traffic times, and efficient route planning helps maximize earnings and minimize stress.

2. Customer Service Skills

A polite, professional attitude leads to better ratings, more tips, and repeat customers.

3. Digital Platform Proficiency

Taxi drivers today rely on digital platforms. Knowing how to work with ride-hailing apps efficiently, manage peak hours, and handle surge pricing can significantly boost income.

4. Basic Business and Financial Management

If you’re self-employed, you’ll need to manage expenses, fuel costs, tax deductions, and insurance. Choosing a flexible insurance solution, like Cachet’s usage-based insurance, can help keep costs manageable.

Challenges of Taxi Work in Estonia

Despite the flexibility and income opportunities, taxi driving in Estonia has its share of challenges:

1. Safety and Late-Night Risks

Dealing with intoxicated passengers, navigating unfamiliar areas, and driving in all weather conditions requires caution. Many drivers invest in dashcams for extra security.

2. Competitive Market and Earnings Fluctuations

Ride-hailing platforms have increased competition, sometimes lowering fares. Drivers need to be strategic about when and where they work.

3. Weather Conditions

Estonia’s winters can be tough. Seasonal tire changes and regular car maintenance are crucial for staying safe and avoiding fines.

4. Platform Fees and Regulations

Ride-hailing platforms take commission fees from each ride, cutting into driver earnings. Staying on top of new regulations is also necessary to keep operating legally.

Is Taxi Driving in Estonia a Good Career Choice?

Taxi driving in Estonia offers independence and flexible hours, but success depends on smart planning and adaptability. One of the most important factors is choosing the right insurance.

At Cachet, we provide insurance that works for taxi and ride-hailing drivers, with pricing based on how much you actually drive. No more overpaying—just fair, flexible coverage designed to fit your business.

If you’re ready to start your journey as a taxi driver, make sure you meet the legal requirements, stay informed, and deliver great service. With the right approach—and the right insurance—you can make taxi driving a rewarding and sustainable profession in Estonia.