Hamburg considers more flexible taxi fares

The licensing authority had argued that a taxi must always cover its costs and that this is only ensured through the fixed taxi tariff. Critics see this as a disadvantage for the fixed-price option. As the Hamburger Morgenpost reported, the calculated fixed prices are generally above metered rides – which diminishes the attractiveness for customers.

Platforms like Free Now point to experiences in other cities: In Munich and Berlin, where a tariff corridor applies, around 60 percent of trips are booked at a fixed price, according to their own figures. In Hamburg, the share is only a quarter.

"A price corridor of ten percent downward leads to significantly higher demand," according to Free Now.

Jan Weber, a board member of Hansafunk, takes a more relaxed view. He told the Hamburger Abendblatt:

"Bookings from corporate customers are increasing, and acceptance among younger customers on weekends is growing. The development is as we expected."

The authorities have now responded. Together with the Federal Taxi Association (BVTM), platform operators, the police, the social authority and the Hamburger Verkehrsverbund, they will examine how a fare corridor affects demand, revenues and utilization. A pilot project will start as early as this autumn: for three to four months, fares may deviate downward by up to 20 percent. Immediately afterwards, they will test whether a 20 percent increase also has an effect.