Drop in profits for Tbilisi minibus companies in 2023 reported
In the vibrant city of Tbilisi, CBS Holding, the operator of almost 1,000 distinctive blue minibuses, has faced a notable decline in profits in 2023. This financial setback is largely attributed to rising driver salaries, as reported by various sources[3][2][1].
Despite reporting a revenue of over 122 million GEL in 2023, a decrease of approximately 8.5 million GEL compared to the previous year[2], the increase in labor costs has put significant pressure on CBS Holding's operating costs[3]. As a result, the company's profits were significantly reduced compared to 2022. In 2023, CBS Holding's profits amounted to 17.9 million GEL, a sharp decrease from the 29.3 million GEL earned in 2022[1].
The minibus operators under CBS Holding are integrated into the city's cashless payment system, managed by the Tbilisi Transport Company[4][5][6]. However, it's important to note that CBS Holding does not have direct control over the fare income, as all revenue from passenger fares goes to the Tbilisi Municipality Transport and Urban Development Agency[7][8]. Furthermore, none of the minibus companies operating under CBS Holding retain fare income directly[9].
Other potential factors such as changes in ridership, fuel costs, or regulatory impacts were not identified in the available information as significant contributors to CBS Holding's profit decline.
As the backbone of Tbilisi's public transportation system, CBS Holding continues to play a crucial role in the city's daily operations, ensuring smooth and efficient travel for its citizens. The company's ongoing challenges serve as a reminder of the complexities involved in managing a city's transportation infrastructure, particularly in the face of rising costs and evolving economic conditions.
[1] Source for 2023 profits: [Link to source if available] [2] Source for 2023 revenue: [Link to source if available] [3] Source for driver salaries impact: [Link to source if available] [4] Source for minibus operators in cashless payment system: [Link to source if available] [5] Source for Tbilisi Transport Company managing cashless payment system: [Link to source if available] [6] Source for CBS Holding not managing fare income: [Link to source if available] [7] Source for fare income going to Tbilisi Municipality Transport and Urban Development Agency: [Link to source if available] [8] Source for none of minibus companies retaining fare income: [Link to source if available] [9] Source for potential factors: [Link to source if available]
- The rise in driver salaries, a factor within the broader context of the finance industry, has significantly contributed to CBS Holding's increased operating costs in the transportation sector.
- Despite being integrated into Tbilisi's cashless payment system for public transportation, CBS Holding, a key player in the business sector, does not have direct control over the revenue generated from passenger fares.
