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Minimum Price for Rental Cars: Heidelberg Acts as First City
The city of Heidelberg has issued a general decree introducing a minimum fare for rental cars. The regulation will come into effect on August 1, 2025, and will apply immediately from that date. The aim is to counter unfair price undercutting in the rental car sector, particularly by platform-based providers.
Herwig Kollar, President of the Federal Association of Taxi and Rental Cars, comments:
"Heidelberg is doing many things right here and serves as a model for other cities. With the general decree, Heidelberg effectively puts an end to unfair dumping offers. I congratulate our members in Heidelberg on this great success and thank everyone for the good and close cooperation in the run-up to this decision."
Calculation model is based on taxi fare
The amount of the minimum transport fee is calculated based on the applicable taxi fare. The base price and the kilometer price of the taxi fare serve as the basis. An initial surcharge of five percent is added to this amount to cover typical waiting times. Subsequently, a discount of 7.5 percent is applied to consider the economic competitiveness of rental car companies. This results in a minimum fee that is 2.875 percent below the pure fare of a taxi without waiting time.
Discounts and Special Prices Prohibited
The established minimum remuneration must not be undercut at any time – not even through discounts, special offers, or reimbursements (cashbacks). Violations of this regulation constitute an administrative offense and can be sanctioned.
Exception for Medical Transportation
The provision only allows an exception for rental cars used exclusively for medical transportation, where there is a contractually regulated remuneration with a health insurance company.
Measure with Signal Effect
With the introduction of the minimum transport fee, Heidelberg is also responding to the recent nationwide protests by taxi drivers who advocated for minimum prices in ridesharing services. At the same time, the city is working on a tariff corridor for taxi transportation to prevent systematic undercutting by ridesharing services. Heidelberg is thus the first municipality in Germany to implement such a regulation mandatorily.
You can find the published general decree here.
Content automatically translated.
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