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Court provisionally overturns Essen's minimum-price regulation for rental cars.
The city of Essen has provisionally suspended its minimum price requirements for ride-hailing providers such as Uber and Bolt following an urgent decision by the Administrative Court of Gelsenkirchen. The court had granted an urgent application and deemed the regulation, in its current form, unlawful. As Heise reports, among others, the city responded to the judges' indications and announced a revision of the order. Until then, it will not be applied.
Regulation in force since the beginning of the year
The minimum prices had been introduced at the start of the year. The city's stated aim was to protect the taxi sector from ruinous competition by rental-car providers. Specifically, trips mediated via mobility apps were allowed to be no more than seven percent below the applicable taxi tariff.
A rental-car company and an intermediary company had filed suit against the provisions. The Administrative Court of Gelsenkirchen granted the motion for a preliminary injunction in a ruling published on Wednesday. The ruling is not yet legally binding and initially applied only to the two applicants.
Unclear calculation for trips across city borders
According to the court, the competent chamber criticized in particular the lack of definiteness of the regulation. It remains unclear how the minimum price should be calculated if a trip goes beyond the Essen city limits. Moreover, the municipality would exceed its jurisdiction if it sought to set minimum prices for trips to other cities. Heise also points this out in its reporting.
With the city's decision to suspend the order entirely, the minimum-price requirements are now temporarily not being enforced for all Uber and Bolt drivers in the city area.
Nationwide Debate on Competition Conditions
The competition between taxis and ride-hailing providers is prompting nationwide debate. Taxis are subject to fixed tariffs set by the municipality, as well as an operating and tariff obligation under the Passenger Transport Act. They must accept every ride and are part of public passenger transport.
Ride-hailing providers such as Uber and Bolt are not bound by this tariff obligation. Their trips are mediated via apps and are often 30 to 40 percent below taxi fares. According to the Federal Association of Ride-Hailing Drivers “Wirfahren,” Essen was the first city in North Rhine-Westphalia to introduce minimum prices for private ride-hailing drivers. Nationwide, such models have so far remained the exception. (Source: Heise)
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