In Leipzig, the taxi model is under pressure - SPD faction demands clear rules for Uber & Co.

Leipzig currently offers a glimpse into the political stalemate between regulation and withdrawal. These days, if you get into some taxis in Leipzig, you’ll notice the change: the logo of Uber is prominently displayed in large letters on the driver's door. Some drivers now even offer their services exclusively through the app of the US company.

Some taxi drivers in Leipzig now exclusively offer their services via the Uber app. | Photo: Symbolic image, AI-generated.
Some taxi drivers in Leipzig now exclusively offer their services via the Uber app. | Photo: Symbolic image, AI-generated.

The classic taxi may not be disappearing, but it is transforming – step by step, almost imperceptibly. The SPD faction in the Leipzig city council does not want to stand idly by and watch this trend. With a current proposal, they are urging the city administration and the mayor to issue a new and, above all, legally secure general decree to enforce minimum prices for app-based ride services like Uber. According to the faction, it is not only about tariff justice but also about service provision in outlying areas.

"With our proposal, we want to encourage the city of Leipzig and the mayor to issue a legally binding decree that ensures taxi fares in Leipzig are calculable for all citizens – and above all, that these services remain available," says faction leader Anja Feichtinger.

Withdrawal with Signal Impact

The background is delicate: In the spring of 2025, the city of Leipzig issued such a general decree but withdrew it again due to legal concerns. The move was not further publicly defended. The SPD is irritated by this.

"That Leipzig is giving up early here sends the wrong signal," says Feichtinger.

The faction warns of an unregulated market that is more oriented towards demand than need. The problem is particularly noticeable outside the city center.

"Especially in times of weak demand or in suburban areas, these services are often not reliably available - precisely where mobility is urgently needed, these providers often withdraw," explains Feichtinger.

According to the SPD, this undermines the principle of public transport – namely, that mobility must be guaranteed for everyone, everywhere and at all times.

The Conflict with the Platform Model

The SPD specifically targets Uber's business model: flexible pricing, algorithmically controlled driver allocation, no obligation to provide transport. In contrast, the classic taxi operates under a tariff system, is subject to regulatory oversight – and must also operate even if it is not economically viable.

This inequality, according to Feichtinger, endangers the economic existence of local taxi companies: “If journey prices are determined solely by supply and demand, people pay ten times the amount during peak times – and this is incompatible with a fair and accessible public transport.”

Heidelberg as a Model?

A look at Baden-Württemberg shows that regulation is possible. In Heidelberg, minimum prices for rental cars have been in effect since August 1, 2025, which may only be up to 7.5 percent below local taxi tariffs. The SPD faction considers this to be a sustainable model:

“Heidelberg shows that regulation works. The city of Leipzig can and should follow this example.”

According to the SPD, it is not about being backward-looking, but about fair rules. The social function of the taxi industry must not be undermined.

“It is important to us that fair wages can be paid in the taxi industry. To do this, prices must be set and minimum thresholds enforced against price dumping.”

Administration relies on observation

The city administration, however, remains reserved. In its statement on the SPD's proposal, it says that they are still examining the legal possibilities.

“The administration is still in the process of examining this in order to be able to legally use the instruments of the Passenger Transportation Act adapted to the conditions,” it states.

They are working closely with the State Office for Road Construction and Transport and other major cities. A recent ruling by the Leipzig Administrative Court from November 15, 2024, serves as a central basis. It is part of a series of proceedings in which cities want to legally secure themselves against platform providers like Uber.

The regulatory department rejects any new decree:

“Issuing a new general order on setting minimum transport fees for rental car transportation is not going to be possible in the near future.”

Hesitant Politics, Open Questions

Thus, the Uber model remains in place for the time being – even though it puts increasing pressure on the conventional taxi. Some are waiting for legal certainty, others for political will. Until then, the market principle applies – even where the market does not want to go.

The SPD faction's proposal will be discussed in the Environment, Climate, and Regulatory Committee in the coming weeks. Only afterward will the city council decide. How Leipzig will position itself remains open. At least in Leipzig, the SPD has clearly positioned itself in favor of the taxi – which is unfortunately no longer self-evident following Munich's minimum price debacle.

One thing is clear: Currently, Uber is racing ahead.

Content automatically translated.
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