Heidelberg sets an example: Taxi as a backbone – not a relic!

Currently, 162 taxis with the appropriate licenses are operating in Heidelberg, while on the opposite side, there are 95 vehicles with 18 car rental companies that are mediated through platforms like Uber. In the future, the prices for rental cars may only be a maximum of 7.5 percent below the established taxi fares. The objective is to curb the market-distorting dumping prices in the car rental business, according to the city administration. For taxi operators, the decision is a long-overdue step.

“The gap between costs and prices had long ago spiraled out of control with the platform providers,” says a Heidelberg taxi driver who has been operating in the city area for 20 years.

The fact that Uber rides were sometimes offered at more than a third cheaper than a regular taxi ride not only drew away customers but also undermined the entire pricing structure.

The nine-euro ride – and its consequences

An example often cited in the debate: the roughly 15-minute journey from the main station to Heidelberg Castle recently cost around nine euros with Uber – at the taxi center, it can be up to 25 euros. A difference that can hardly be explained by service or quality but is rather due to the business models: While taxis are strictly regulated, rental car providers have so far operated with significantly more flexibility – and with a considerable cost advantage.

For Uber, the intervention is a setback. In a statement, the company referred to this as a "black day for consumers." People with low incomes would be excluded from the market by the new regulation. The city of Heidelberg, on the other hand, points to its responsibility for a functioning mobility service – even outside the city center and at times of day that are economically unattractive. The taxi industry is considered part of public welfare – "a particularly worthy good of protection,” as stated by the town hall.

Association sees signal effect – other cities hesitate

The Federal Association of Taxis and Rental Cars (BVTM) expressly welcomes the step, as expected. Managing Director Michael Oppermann hopes for a signaling effect:

"We need the minimum prices because only in a fair competition environment can we assert ourselves."

Similar problems are seen in more than 20 other major cities. However, the political will is not present everywhere. For example, Munich decided against minimum prices this week. In Leipzig, an earlier attempt was overturned after a legal dispute in May.