Ride-Hailing Apps at Risk of Setback: Snapp, Tapsi, and Maxim Warn Parliament

Iran’s Parliament is set to review a new bill today that, if passed, could pose serious challenges to the operations of major ride-hailing platforms like Snapp, Tapsi, and Maxim across the country. Although the bill is officially intended to “regulate smart transportation services,” industry insiders argue that its implementation would place a heavy burden of taxes and bureaucratic restrictions on these companies.

A key provision in the draft law hands over the authority to issue operating licenses for smart transportation platforms to local municipalities. It also mandates a tiered taxation system based on the type of service: full taxes for private rides, reduced taxes for shared rides, and exemptions for public or eco-friendly services.

In addition, the bill requires these companies to provide real-time data—including trip times, distances, fares, and vehicle information—to a centralized system overseen by the Ministry of Interior. This particular clause has sparked serious concerns about data security and user privacy.

In response, Snapp, Tapsi, and Maxim issued a joint letter to Parliament, warning that the proposed law could lead to a “significant weakening of smart transportation services” nationwide. The companies called for a revision of the bill and urged lawmakers to avoid overlapping and conflicting regulations from municipalities.

In parts of the letter, the companies stress that delegating license authority to local governments would result in fragmented decision-making, higher operating costs, and the involvement of non-specialized bodies in a tech-driven industry. They also flagged the economic consequences of the bill, including fare increases, driver attrition, and diminished competitiveness with traditional transport services.

The letter highlights the crucial role of ride-hailing services in easing traffic, improving urban mobility, and generating employment. It urges lawmakers to adopt a more comprehensive and pragmatic view during deliberations and warns against sacrificing the public interest for short-term municipal revenue gains.

Supporters of the bill argue that it aims to create “transportation justice” and promote public transit.

But critics warn that careless implementation could backfire—leading not to better regulation but to regression in Iran’s smart mobility sector. They point out that a framework for municipal oversight of ride-hailing services already exists, established in 2019, when Tehran’s Traffic and Transportation Organization formally recognized these platforms.

Nima Ghazi, head of the Tehran E-Commerce Association, warned that requiring separate licenses for each city would open the door to widespread corruption. Snapp CEO Mohammad Khalaj also sounded the alarm, saying the bill would revive “golden signatures” and bureaucratic duplication—setting innovation back.