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Frankfurt tightens controls for ride services
With this measure, Frankfurt is aligning itself with Berlin, where a similar regulation has been in effect since last year. There, platforms are only allowed to connect with car rental and taxi companies that have a valid license. As Habich explains, providers are to be checked against the city databases. The "All About Cars" service center is responsible for this and checks whether the required permits are in place whenever a provider registers.
Lack of License as a Security Risk
Such a control has been lacking until now. As a result, providers without a license or driver's permit have been able to have rides arranged through the platforms. This not only poses a problem for competitive conditions but also carries security risks for passengers. Vehicles without licenses often do not have the required insurance coverage. In Berlin, there were estimates that at times up to 1,000 such vehicles were on the road, and in some cases, there were links to organized crime.
According to the Frankfurt Department of Public Order, platform operators will in the future need to obtain official confirmation before activating new providers. Additionally, a regular reconciliation of the existing vehicle inventory is planned. Changes in concessions or operating licenses should be continuously updated and communicated to the platforms.
High Proportion of Illegal Vehicles Expected
Currently, there are 1,712 licensed taxis and around 2,000 rental cars with driver permits in Frankfurt. The city administration hopes that the new regulation will enable the quick and effective exclusion of illegal providers from the platforms. The need for action is demonstrated by a recent case from January: Investigators uncovered a group that operated with forged concessions. With around 100 illegal vehicles, the perpetrators offered transport services, paid neither social contributions nor taxes, and caused approximately 2.5 million euros in damages.
According to the investigators, every fourth vehicle arranged via Uber, Bolt, or similar platforms could be operating without a valid license. This raises questions once again about the control and regulation of business models.
Criticism of Dumping Wages and Unreported Employment
The new regulation is met with approval from the political sector. Frank Nagel, transport policy spokesperson for the CDU parliamentary group in Römer, sees it as a necessary step to establish fair competition conditions. He criticizes that the dumping prices of platform providers lead to precarious working conditions. Tax evasion and unreported employment undermine not only social justice but also the economic stability of the industry.
There is also support for the plans from the taxi and rental car industry. Industry associations have repeatedly pointed out grievances, including the unequal treatment of taxis and rental cars as well as the high proportion of illegal vehicles in the market. It's not only about unlawful licenses, but also about violations of driving and rest time regulations or the circumvention of social contributions.
From Now On, "Illegal" Is Truly "Illegal"
It seems puzzling that an agreement is necessary to ensure that no illegal vehicles are used by platform operators. Shouldn't that be self-evident? Doesn't the word "illegal" already imply that it is prohibited? Haven't the authorities simply turned a blind eye for far too long? The decisive factor now will be whether the authorities can effectively penalize violations in the future.
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