80 percent of the taxi fare: Cologne plans a new price cap for rental cars

The city of Cologne plans to introduce a minimum fare for transport by rental cars. As stated in a notice, a general administrative order shall be issued for this purpose. The minimum fare should correspond to the applicable taxi tariff and be at least 80 percent of the regular taxi fare. The aim of the measure is to prevent non-market prices and to ensure fair competitive conditions between taxi and rental-car traffic.

Guidance based on the taxi tariff

According to the administration, the price floor for rental car rides should lie below, but in close alignment with, the taxi tariff. Specifically, it is envisaged that the minimum transport fare be set at at least 80 percent of the regular taxi tariff. With this, the city, in its own description, intends to prevent individual providers from operating with clearly lower prices and thus distort competition.

Competition conditions in focus

Alexander Mönch, president of Freenow by Lyft Deutschland & Österreich, evaluates the move positively. Parts of the rental car market would circumvent existing rules and thereby cause distortions of competition. The municipal possibilities to counteract are limited. Against this background, in his view the introduction of a minimum transport fare is a necessary measure in the public interest.