High growth rates bring revenue and profits which are to be reinvested in expansion due to market liberalization.
Despite antiquated regulations, Cammeo Taxi in 2016 achieved the record breaking business results. It paid into the state budget 21 million kuna in taxes and salary contributions. Its revenues amounted to 85.3 million kuna, which was a 24 percent increase compared to 2015. The company realized profits in the amount of 10.7 million kuna, which was 13 percent higher than the year before, reports Poslovni.hr on April 30, 2017.
About 95 percent of the profits will be reinvested in business development, which is the main lever to achieve high rates of growth and new employment in the future. Cammeo currently employs more than 750 people, and next year it plans to employ additional thousand employees, which is a fifth of the new jobs which are estimated to be opened in the sector.
Reinvesting profits into new projects is Cammeo’s answer to market challenges which have been brought to the entire market by the liberalization process and announced legislative changes.
At the time when Slovenia liberalized its market, there were 500 taxi licenses in the country, and today there are 2,500 licences, which is 500 licences more than in Croatia. By the number of licenses, Croatia is at the EU’s bottom, with a similar position in the region as well. However, announced legislative changes should bring about a turnaround.
The process in which the number of licenses at the local level, for example in Zagreb and Split, was strictly controlled will be replaced by the market, and local authorities will issue licences to everybody who will meet the conditions.
Cammeo is ready for market liberalization, says managing director Vladimir Minovski. The adaptation process has already begun, with about a hundred new vehicles which are already at the Cammeo’s garage. The plans is to fully cover Croatian cities with its own taxi network, with a thousand new vehicles and the same number of new employees. According to the business model, each driver will be able to use their car for both official and private purposes.
