E-Taxi Scheme vs. Traditional Taxi – Which is Better for Drivers 2025?
For taxi drivers in Pakistan, choosing the right vehicle can have a big impact on earnings, maintenance costs, and long-term financial stability. With the launch of the E-Taxi Scheme, the Punjab Government has provided drivers with a modern alternative to traditional taxis. These electric vehicles promise lower costs, government support, and a greener way to run a taxi business. In this guide, we’ll compare E-Taxis and traditional fuel-based taxis in detail.
What is the E-Taxi Scheme in Pakistan?
The E-Taxi Scheme is a government initiative launched to promote electric vehicles in the public transport sector. Under this scheme, drivers can lease or purchase electric taxis at subsidized rates, with support for charging infrastructure and maintenance.
In Punjab and Sindh, pilot programs have already started where drivers are given access to EVs with low-interest financing and reduced registration fees. The goal is to reduce fuel dependency and improve air quality in major cities.
What is a Traditional Taxi System?
Traditional taxis are the old-school system we have seen for decades in Pakistan. Drivers either own the taxi or rent it from a taxi owner on daily or weekly basis. The income depends mainly on street pickups and private contracts.
Key Features:
WhatsApp Channel- Petrol or CNG based cars
- Street pickups, no app-based dependency
- Higher fuel and maintenance costs
- Long-time trusted system
Cost Comparison: E-Taxi vs. Traditional Taxi
| Aspect | E-Taxi | Traditional Taxi |
| Initial Investment | Higher (installments/lease) | Moderate (purchase or rent) |
| Fuel/Running Cost | Very low (electric charging) | High (petrol/CNG price fluctuations) |
| Maintenance | Less frequent, but battery expensive | Frequent repairs, cheaper parts |
| Monthly Expenses | Lower overall | Higher due to fuel and repairs |
Earning Potential for E-Taxi Drivers
E-Taxi Income
- More stable because of ride-hailing apps.
- Extra savings from fuel costs.
- Can earn more during peak hours on apps like Careem, InDrive, Uber (if integrated).
Traditional Taxi Income
- Relies on street customers.
- Income can drop during off-peak hours.
- High fuel costs reduce profit margins.
Comfort and Safety for Drivers
- E-Taxi: Modern cars, better AC, more comfortable seats, safer ride with GPS and app monitoring.
- Traditional Taxi: Often old cars, less comfort, sometimes unsafe conditions for both driver and passenger.
Government Support and Future Scope
- E-Taxi Scheme: Strong government support with financing schemes, subsidies, and future expansion plans.
- Traditional Taxi: Almost no government support; system is becoming outdated.
Pros and Cons of E-Taxi for Drivers
Pros:
- Low running cost
- Environment friendly
- Higher earnings with ride-hailing apps
- Long-term opportunity
Cons:
- High initial installment pressure
- Limited charging infrastructure in Pakistan
- Battery replacement cost after few years
Pros and Cons of Traditional Taxi for Drivers
Pros:
- Low entry barrier (can rent a taxi easily)
- No need for digital apps or smartphone literacy
- Flexible working hours
Cons:
- High fuel costs eat profits
- Cars often outdated, less comfortable
- Declining customer demand as people prefer apps
Long-term Earnings Comparison
| Cost Factor | E-Taxi | Traditional Taxi |
| Fuel per Month | 1000–2000 PKR | 15,000–20,000 PKR |
| Maintenance per Year | 5,000–10,000 PKR | 25,000–35,000 PKR |
| Net Monthly Earnings | Higher due to lower expenses | Lower due to high costs |
This table shows that over time, drivers can save a substantial amount with E-Taxis compared to traditional taxis.
Which is Better for Pakistani Drivers?
Looking at the long-term, E-Taxi schemes are clearly better for Pakistani drivers because they reduce running costs, provide app-based earning stability, and align with future government transport policies. Traditional taxis may still work in smaller cities and rural areas, but their future is limited in big cities.
Conclusion
For Pakistani drivers, the future belongs to E-Taxi. With lower costs and better earning opportunities, it offers a clear advantage. Traditional taxis may still survive in rural areas, but in urban Pakistan, E-Taxi is the winning option.
