Yakutsk's Bus System Overhaul: Contemplating the Elimination of "AEB" Commission
### Almazyrgeybank Commission and Yakutsk's Bus Reform: A Closer Look
Yakutsk's public transport system, currently undergoing reform, faces challenges due to a 2.5% commission fee charged by Almazyrgeybank on transactions related to payments for the city's bus services. This commission adds to the operational costs for bus operators, potentially impacting their profit margins or forcing fare adjustments.
The commission fee also affects the modernisation of Yakutsk's ticketing system, as stakeholders seek cost-effective banking partners and payment platforms. High transaction costs might slow down the full adoption of cashless and electronic ticketing methods, potentially limiting the benefits of transparency and efficiency targeted by the bus reform.
City authorities and transport operators are now negotiating with Almazyrgeybank or considering alternative banks/payment systems to reduce transaction costs. This could shape the pace and success of the bus reform.
Vladimir Nifontov, a local commentator, expresses concerns about the financial unprofitability of the bus system, suggesting a fair competition for managing cash flows, reducing commissions to a reasonable percentage, and removing greedy intermediaries to increase bus operators' income. He finds the current situation advantageous for Almazyrgeybank and claims that the idea of bundled lots with 'social' routes, which may favour less profitable routes, is laughable.
Nifontov suggests raising bus fares to 40 and 45 rubles, which would increase route profitability, but he does not address the potential impact on residents losing their passes. His approach to problem-solving appears to be decisive, disregarding the 'whining of the weak'.
The bus reform is revealing colossal shortcomings in the transport system, including underfunding, low territorial coverage, driver shortage, outdated transport, and lack of competition in the payment system. Problems that were long hidden, masked by the habit of citizens to endure, are starting to surface. If the commission of Almazyrgeybank is indeed 10%, it is not competitive in market conditions. A more favourable commission with better quality terminals in buses could potentially be offered by another bank.
It is unclear how Almazyrgeybank entered Yakutsk's transport payments and why it cannot be displaced. The rebalancing of routes to reduce the contrast between profitable and unprofitable ones is underway, but its true impact will be seen in operation. The bus reform continues to bear fruit, but addressing the underlying financial issues remains a significant challenge.
The high commission fee charged by Almazyrgeybank on transactions related to Yakutsk's bus services could potentially impede the progress of industry and business within the city's public transport system, as it adds to operational costs, impacts profit margins, and hinders modernisation efforts. Local commentator Vladimir Nifontov suggests that finding a banking partner with a more competitive commission and improving the payment system could be critical for the success of the bus reform in Yakutsk's finance sector, ultimately contributing to a more profitable and efficient business environment.
