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Berlin suspends the granting of taxi licenses — a year of standstill in the taxi market.
The measure is intended to safeguard the "long-term viability of the taxi industry," according to the Office of Transport Senator Ute Bonde (CDU).
The administration describes a market that has fallen out of balance: With around 6,600 licensed taxis currently, the supply clearly exceeds actual demand. Many operators were no longer covering their costs. Earnings per hour have shown a negative trend for years. The fixed-price option introduced in June 2024 has so far changed little; demand has been declining for years and has not noticeably risen, even with new tariff instruments.
Legally, the Senate is treading on solid ground. The Passenger Transport Act allows licenses to be denied if additional vehicles threaten the viability of the local taxi trade. The administration sees this point as having been reached. Behind the sober formulation lies an economic imbalance that has been discussed in the industry for some time.
20 euros revenue, 30 euros in costs
The transport-policy spokesperson for the SPD parliamentary group in the Berlin state parliament had been demanding a moratorium on taxi concessions for months. He cites figures: For more than a year, the average hourly revenue has stagnated at around 20 euros. Against this would be a statutory minimum wage of 13.90 euros, as well as tax and social contributions, and vehicle, insurance, fuel and electricity costs. A viable operation is effectively impossible under these conditions. Realistically, at least 30 euros in revenue per hour would be required.
Schopf also points to the high number of open applications. Companies from the rental-car sector were pushing more strongly into the taxi market as a result of tighter controls. Without regulatory policy limits, further market distortions threaten.
Industry representatives also welcome the step. Under the leadership of Hermann Waldner, president of Taxi Deutschland e. V., Berlin taxi associations themselves had requested a monitoring period in spring 2025. Waldner argues that the current number of vehicles is already hardly adequate. He also points to around 3,000 officially licensed and a further 1,640 illegal rental cars, whose decline in Berlin has indeed been achieved, but whose relocation to surrounding districts creates new competition.
The Bundesverband Taxi und Mietwagen e. V. (BVTM) also supports the decision. Managing Director Michael Oppermann speaks of a necessary regulatory signal. The concession stop, however, can only be a first step. Without binding minimum prices in the rental-car sector there will be no fair competition. The taxi is part of the public mobility structure – especially in off-peak times, in outer districts and for passengers with special needs. If legal operators can no longer cover costs, the system as a whole would come under pressure.
Market in Motion
The Berlin taxi story has, for decades, resembled a curve with steep fluctuations. In 1960, 1,172 taxis were licensed in West Berlin; ten years later 4,241, in 1988 the number surpassed the 5,000 mark. After reunification it jumped to around 7,000; in August 2016 it stood at 8,376.
A phase of stagnation and decline followed. Between late 2016 and spring 2023, the number of concessions fell, while the private-hire vehicle concessions rose sharply. In spring 2022, only just under 5,800 taxis were licensed. The State Office for Citizens' and Regulatory Affairs (LABO) was considered overwhelmed by many in the industry.
With the change of government in 2023, regulation gained momentum. The new Senate put tariff corridors and minimum transport charges for private hire vehicles up for discussion; LABO was re-staffed. As a result, the number of private-hire vehicle concessions in Berlin fell sharply; at the same time, pressure on the taxi segment grew again. Recently, LABO had around 2,500 applications for new taxi concessions — for more than 6,600 licensed vehicles already.
The observation period is now intended to buy time. Should the situation stabilize sustainably, the stop could be lifted early, according to the administration. But even there, apparently hardly anyone expects a rapid easing.
Rental-car operators become taxi operators
Anyone seriously looking to enter a market with stagnant revenues and rising costs generally pursues a different calculus than long-term loyalty to a location. In the industry, it is an open secret that especially former or active rental-car operators are seeking the path into taxis—not infrequently with business models that previously attracted attention as partners of international platforms.
The growing number of taxis bearing advertisements for ride-hailing platforms on their doors is a visible expression of this shift. For many established entrepreneurs, the focus is less on competition per se and more on concerns about rules and their enforcement. Those who do not adhere to guidelines gain short-term advantages—and increase the pressure on those who operate legally.
The concession moratorium sends a signal here. It temporarily prevents additional vehicles from pushing into an already strained market. The structural problem is not solved by this alone. Without clear price floors in the rental-car sector, consistent checks, and a robust demand base, the Berlin taxi trade remains on thin ice.
Content automatically translated.
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