Dispute over fares: Freenow demands minimum fares for rental cars.

The Freenow ride-hailing platform is calling for the introduction of minimum prices for rental-car rides, as mediated, among others, through platforms such as Uber and Bolt. The company's head for Germany and Austria, Alexander Mönch, sees in particular in the Berlin market a distorted competition due to significantly cheaper rental-car offers. In his view, minimum charges are necessary to curb price dumping.

For years the taxi industry has been under economic pressure. The mediation of rental-car rides at often lower prices has led to intensified competition in road passenger transport. According to Freenow, heavily discounted offers worsen the situation further.

Different positions of platform operators

The competitor Bolt rejects minimum prices. According to the company, price floors led to politically driven increases in mobility costs and restricted consumer choice. Higher ride prices could therefore reduce demand and thus also reduce the number of orders for drivers.

Minimum prices in Cologne and Munich

In Cologne, since June 1 minimum prices apply for travel with rental cars. Trips there may be no more than 20 percent cheaper than a comparable taxi ride. The taxi tariffs are set by the authorities in the respective cities. Also in Munich, corresponding minimum prices for rental-car rides are to take effect from July 1.

In Berlin there has been for two years the possibility to offer taxi rides at fixed prices. According to market participants, this has only marginally reduced competitive pressure. The taxi industry had previously called for such a regulation.