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End to price dumping: Munich introduces minimum prices for ride services
In Munich, minimum prices for rides with providers such as Uber or Bolt will apply in the future. This was decided by the district administration committee of the city council. The prices for rides in the Munich city area must now be aligned with the "base and per-kilometer price of the taxi tariff." This base price is currently €5.90, the per-kilometer price €2.70.
For Uber, Bolt and Co., however, the "taxi-mandatory surcharges" will not be charged. According to the Greens, this would therefore yield a base price of €5.13 in the future. For trips up to and including seven kilometers, the per-kilometer price is €2.43; for distances beyond that, €2.25. Taxi prices should also become more flexible in the future and, for example, rise less sharply with increasing travel distance. A ride from Munich Central Station to Munich Airport would then cost €10 less than before. The regulations are set to take effect on July 1.
The dispute had long been smoldering
For some time now, a dispute has been smoldering in Munich over the business practices of ride-hailing services, whose drivers transport passengers, according to the city, on average about 40 percent cheaper than conventional taxis. However, findings by the Munich Main Customs Office indicate that they are almost across the board violating labor and social-law provisions. The Minimum Wage Act is also regularly ignored. Taxi drivers had therefore demonstrated, demanding fair competition and minimum prices.
The provider Bolt criticized the now enacted regulation as a de facto "taxi tax". It is a "politically mandated price increase for everyday mobility, which mainly affects consumers and is meant to protect a single industry from competition". From Bolt's perspective, the talks with the city had not failed. They had put forward several concrete proposals that would have been able to bring the interests of passengers, drivers and the city into alignment. "From our point of view, it is therefore important to note that the talks, from our perspective, did not fail, but were still part of an ongoing process."
Ultimately, the myth of the platform operators that they were concerned with the interests of the passengers and with affordable mobility for all could not be sustained. There were too many violations of the return obligation and of employment and social-security regulations documented. Above all, the findings of the Munich Main Customs Office led to the city council approving minimum prices for rental cars.
Content automatically translated.
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