The base of operations is turning into a "little base of operations" — how the platforms intend to circumvent the return obligation in the future.

Anyone who believed that the dispute over the return obligation had been settled for the time being by the ruling of the Federal Court of Justice might have been mistaken. Not even a month after the Karlsruhe judges confirmed the regulation, there is already discussion about new models that could significantly mitigate its practical consequences.

Every parking space a place of business? The platforms, after the BGH ruling confirming the return obligation, now probably intend to redefine the place of business.| Photo: stock image, AI-generated
Every parking space a place of business? The platforms, after the BGH ruling confirming the return obligation, now probably intend to redefine the place of business.| Photo: stock image, AI-generated

Starting point is a ruling that initially appeared to be a success for the taxi trade. In early June, the Federal Court of Justice clarified that rental cars after the completion of a trip must, in principle, return immediately to their base of operation, provided there is no new assignment. The judges thereby confirmed a central pillar of passenger transport law and rejected the argument that the regulation was unconstitutional or in violation of European law.

For taxi operators, the decision was more than a legal formality. The return-to-base obligation is among the few instruments that make the structural difference between taxi and rental-car traffic visible. While taxis may wait for customers at taxi stands and are subject to a tariff and a transport obligation, rental cars may only perform pre-booked trips. The return-to-base obligation is intended to prevent them from effectively acting like taxis without being subject to the same regulatory requirements.

New structure - new loopholes

According to information available to our editorial team, representatives of the platform economy are examining new organizational constructions. The idea sounds technical, but would have significant consequences for the market: If a car rental company not only maintains a single operating base but operates numerous smaller locations or provisioning spaces, the mandated return could be substantially shorter than before.

Legally, the discussion centers on the question of what exactly counts as an operating base or permissible starting point for a rental car. The Passenger Transport Act requires the return to the operating base. However, it does not specify how large such a location must be or how many of them a company may maintain. It is exactly here that some market participants apparently see room for maneuver. For platform providers, that would be attractive. The business model thrives on short waiting times and high vehicle availability. The closer vehicles can be positioned to the next passenger, the more efficiently the matching operates. The return obligation runs counter to this principle because it creates empty trips and temporarily removes vehicles from the market. Uber had already criticized the regulation in the proceedings before the Federal Court of Justice as ecologically and economically problematic.

Is every parking space a base of operations?

For the taxi trade, the matter is naturally different. Many entrepreneurs see in the current considerations an attempt to hollow out a regulatory element that has been confirmed by the Federal Court of Justice through organizational constructs. Because, if a business suddenly has a multitude of small locations, the return-to-base obligation loses much of its regulatory effect.

In its ruling, the Federal Court of Justice clearly stated that the return-to-base obligation remains part of the market model intended by the legislator. In the 2021 reform of the Passenger Transport Act, the rule was deliberately retained. The aim was to preserve the different roles of taxi transport and rental-car traffic. Moreover, it is crucial whether policymakers will continue to uphold a clear separation of the forms of transport. The Karlsruhe ruling has, for the time being, upheld the return-to-base obligation. Whether it retains its practical effect will only become apparent in the coming years. For, as is often the case in the platform economy, not only the wording of a law determines the outcome. What matters is probably who finds the more creative way to handle it.

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