Thousands of Cubans use their privately-owned classic or modern cars to give black-market rides, risking steep fines or losing their cars to the state if caught. In some areas, they troll set routes where commuters wait for a lift. The existence of the illegal business is a necessity for car-less Cubans, who are for the most part not allowed to buy new cars and thus are left dependent upon a deficient public transportation system.
This year, the Cuban state appears to be reconciling demand and supply in its laws. Havana had stopped granting new licenses for private taxis in October 1999, but lifted the restrictions in January. By May, authorities started handing out taxi permissions to applicants, but were so inundated with requests that they quickly suspended the program in Havana and only fully resumed on Friday.
Licensed taxi drivers will pay a monthly fee of $21.50 to drive fellow Cubans (not foreigners, who are driven by a different fleet of taxis), whether they ultimately make that much or not.
It’s a small free-market opening in Cuba’s state-run economy—one that will not lead to riches, but might help alleviate a pressing problem.