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Price Regulations for Uber & Co: Taxi Industry Welcomes Leipzig Solution
For the taxi industry, this decision is extremely important, emphasizes BVTM Managing Director Michael Oppermann, because Leipzig is consistently protecting its mobility system from irregular dumping offers.
“We congratulate the city on its decisive action, which will serve as a model. We urge all other major cities to follow Leipzig's example and introduce minimum prices that effectively prevent the undercutting of taxi fares,” Oppermann continues.
The US platform Uber is considered the toughest competitor to the taxi industry and primarily relies on the transportation model “rental car with driver,” for which taxi regulations do not apply. Taxis are subject to a municipally determined taxi fare, are obligated to accept every order, and must maintain an offer at all times – around the clock, 365 days a year.
"Taxis are part of public services and public transport – in this role, the taxi industry must be protected from dumping offers by Uber & Co., which are often only possible by circumventing important rules and accepting social dumping and illegal work," explains Oppermann. And further: "The federal legislator has explicitly given cities and districts the opportunity to issue pricing guidelines for ride services as well. We welcome that Leipzig is now making use of this opportunity."
The introduction of such an instrument is currently being prepared in Hanover and Heidelberg, and is also being considered in the metropolises of Berlin and Munich.
The minimum price aligns with the taxi tariff
The new minimum price for ride services in Leipzig is now aligned with the taxi tariff. While in meter-based taxi rides the price is determined by distance and time, for rental cars the distance tariff applies plus a flat 12 percent surcharge. The city of Leipzig was already the first major city in Germany to introduce minimum prices in October 2021. In a process that attracted nationwide attention, the administrative court affirmed the legality of the minimum prices in December last year, though it criticized the specific amounts. These had previously been based on the local public transportation tariff and resulted in prices up to 75% higher than the taxi tariff, particularly on very short routes. With the approach now chosen, the city addresses the court's objections by basing the price directive for ride services on the taxi tariff.
The taxi association also particularly highlights the way the minimum prices are now being introduced in Leipzig. Oppermann:
Content automatically translated.“The minimum prices are implemented through a general decree with an order for immediate enforcement. Thus, they apply directly, even to companies that enter the city from the surrounding area and wish to offer their services there. This exact approach is strongly recommended for other cities to emulate.”
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