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Mainz taxi industry calls for minimum prices for private-hire vehicles
The situation of the taxi industry is serious. Digital platforms such as Uber broker rides to private-hire companies that are not bound by the regulated taxi fare and can therefore charge significantly lower prices. This results in severe competitive disadvantages and threatens the existence of numerous businesses.
"It’s not about protectionism, but about a level playing field. Taxis have fulfilled important public-service roles for decades — for that, we need a fair regulatory framework," said Claus Madloch, chairman of the supervisory board of ATF Funkzentrale Mainz.
Taxis as a public service
The role of the taxi industry goes far beyond mere passenger transport. Especially in the evening and night hours, for medical trips, or in neighborhoods with weaker public transport links, taxis fulfill public service functions. Without policy corrections, the industry fears, this assurance of mobility would be at risk.
Legally, the city is seen as having an obligation. Section 51a of the Passenger Transport Act allows municipalities to set minimum fares for private hire vehicles when this is required in the public interest. This was pointed out by Guido Borning, managing director of MOLO.
"Heidelberg has shown that minimum fares for private hire vehicles are an effective and legally sound instrument. Mainz intends to act – and thereby ensure fair competition. These are positive signals."
Heidelberg as a model
In Heidelberg, the administration issued a corresponding order at the end of June. There, the minimum fares are aligned with the taxi tariff, albeit with a slight discount. Industry representatives are calling for a similar model to be implemented in Mainz as well—with immediate effect, in order to quickly end distortions of competition. Accompanying this, strict enforcement of the return-to-base requirement and of trip documentation is necessary, as is close cooperation with customs, police, and the public order office.
The city administration showed understanding for the operators’ concerns but pointed to the need for a solid basis. An expert report is to clarify how minimum prices can be structured and what impact they would have. In addition, Mainz wants to coordinate with the neighboring cities of Frankfurt, Wiesbaden, and Darmstadt, since most of the Uber vehicles operating in Mainz come from there.
In the end, there was an acknowledgment that swift solutions are necessary.
"It’s five past twelve," said Madloch.
That the city intends to take action is welcome—but the decisive factor is how quickly implementation takes place.
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