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Minimum prices in Essen under scrutiny: What the ruling means for the taxi trade
But now the Administrative Court of Gelsenkirchen has criticized the regulation in its current form. Two taxi drivers had successfully sued in expedited proceedings. The core of the criticism: too vaguely formulated. Especially for trips across city borders, there is a lack of a clear calculation basis. Moreover, the court sees the city's jurisdiction as having been exceeded where prices are set beyond its own territory.
All taxi operators must adhere to minimum prices – except for two!
The judgment is not a landmark ruling. The minimum prices continue to apply – but with a notable caveat: Those two plaintiffs, of all people, do not have to adhere to them for the time being. A detail that almost exemplifies the market's imbalance. For one thing, the starting position is well known. Taxi companies operate under clear guidelines. Fares are set by the authorities, and transport obligations apply without exception. Whether it's a short trip or a difficult passenger, a taxi will drive. This reliability is part of the public service.
Rental car providers, on the other hand, operate under different rules. They take on only lucrative assignments and circumvent tariff bindings. Above all: They are often significantly cheaper. Price discounts of 30 to 40 percent are not uncommon. A competition that is decided less by efficiency than by different regulatory frameworks.
"Wirfahren" organizes the resistance
This is exactly where minimum prices come into play. They are not a privilege for taxis, but an attempt to safeguard minimum standards in competition. That a city like Essen takes this step is therefore less a solo move than a signal. Even if the Federal Association of Car Rental Drivers "Wirfahren" organizes the resistance and the decision from Gelsenkirchen is already interpreted as a blueprint for other cities.
Indeed, the resolution shows above all one thing: not the failure of the idea, but the necessity to implement it cleanly. Clear definitions, legally secure design, unambiguous responsibilities. The political will is there – now it requires precise, workmanlike execution.
For the taxi trade there is more at stake than just a price level. It is about the question of whether regulated traffic can continue to withstand a largely freely operating platform model. Or whether the rules ultimately always orient themselves toward the most flexible provider. Essen is currently providing a textbook case in this regard. It is still open how the city will readjust. What is certain: without interventions, competition will continue to tilt. And with it a system that has hitherto stood for reliability in urban transport.
Travel across city boundaries
That it is precisely the trips across city boundaries that pose a legal problem in the introduction of minimum prices is, in fact, a mockery. After all, it is mainly the hire-car firms in the municipalities around the larger cities that, in complete disregard of the obligation to return to their base of operations in the big cities, go rogue.
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