Historic step toward fair competition: Munich taxi industry welcomes decision on minimum fare charges and new taxi tariffs.

The district administration committee of the Munich City Council yesterday and the plenary assembly today gave the green light for the introduction of minimum fare charges (MBE) for rental cars, thereby bringing a years-long struggle of Munich's taxi trade for fair competition conditions to a decisive turning point.

Finally the minimum fare tariffs are coming to Munich - we have, via AI, already handed Florian Bachmann from the Munich Taxi Association e.V. and Thomas Kroker (taxi-München eG) a placard with the historic decision. | taxi-heute Editorial / AI
Finally the minimum fare tariffs are coming to Munich - we have, via AI, already handed Florian Bachmann from the Munich Taxi Association e.V. and Thomas Kroker (taxi-München eG) a placard with the historic decision. | taxi-heute Editorial / AI

In addition to the introduction of minimum fares, adjustments to the taxi tariff were decided at the same time, which are intended to enable a more flexible pricing. The Munich taxi industry expressly welcomes both decisions.

 

A Level Playing Field — finally

It is already the third attempt to introduce a minimum fare for hire cars in Munich. After two failed attempts, today's decision sends a clear signal. The minimum fare is based on the base and per-kilometer price of the taxi tariff, minus the tariff corridor applicable to taxis, with waiting-time components and taxi-specific surcharges not being calculated.

“Today is a good day for Munich — for the taxi industry, but above all for the passengers and the workers in the entire sector. We have been calling for fair rules for years. A minimum fare is not a special advantage for the taxi, but the long-overdue answer to years of wage and social dumping by platform providers.” (Florian Bachmann, Taxiverband München e.V.)

New Taxi Tariffs Create Flexibility

In addition to the MBE, the KVA has also decided on adjustments to the taxi tariff. Those who drive longer distances are likely to benefit in the future from decreasing per-kilometer rates. In addition, the tariff corridor is to be expanded, which regulates minimum and maximum prices for rides booked in advance. The more flexible pricing is intended to increase demand.

„The tariff reform gives us the tool we need to compete — not through dumping prices, but through quality and flexibility. An expanded tariff corridor will help us respond more attractively to advance bookings and win back customers who have migrated to Uber and Bolt.” (Thomas Kroker, Taxi-München eG)

Broad support from business and politics

Today’s decision rests on a broad coalition of common sense. Already last year, the Chamber of Industry and Commerce for Munich and Upper Bavaria had also called for a minimum fare for all taxi-like ride services, naming Uber and Bolt specifically. The Munich District Administrative Office was able to justify the necessity of the MBE on an even more solid data basis. Talks with the platform representatives also yielded little willingness to compromise on the part of Uber & Co.

„The taxi is part of the public provision of essential services. We are subject to the obligation to transport; we operate at night, we operate in peripheral areas, and we pay social security contributions and taxes. Whoever undermines that with dumping fares not only harms us — he harms the entire mobility system of this city." (Florian Bachmann, Munich Taxi Association e.V.)

Next steps

The district administration committee's decision today must still be confirmed tomorrow by the plenary assembly of the City Council.

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