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Dispute over dumping prices: Uber protests against minimum fares in Essen
The city of Essen is preparing to introduce minimum prices for ride services. The council is set to decide on the proposal in September. As things stand, all party groups support the planned regulation.
Planned regulations
The plan is for minimum prices to apply to ride services that are seven percent below the current taxi fare. In addition, fixed fares are to be introduced for taxis. The initiative is based on a report by the consulting firm Linne + Krause, which examined the local market situation.
Protest action by Uber
The Uber platform is protesting the planned regulations. To this end, the company sent around 150 vehicles to the Essen city center. The aim of the action is to take a stand against the planned minimum prices.
Criticism of dumping prices
According to the Federal Association of Taxis and Hire Cars, Uber’s current prices are only possible by undercutting labor and social standards. Based on their calculations, drivers would have to work over eleven hours a day to earn the statutory minimum wage for eight hours.
Experience from other cities
The association warns that Uber could try to influence the decision at the last moment, as has already happened in Munich. At the same time, it points out that the trend at both the national and international level is toward stronger regulation of ride-hailing services.
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