Munich's taxi association criticizes Uber: Exploitation through dumping prices?

According to the taxi association, Uber drivers in Munich have to work over eleven hours to earn the minimum wage. Investigations by authorities reveal massive violations. The city is now taking action – and could force the ride-hailing service to make changes.

Symbolic image of working conditions in driving services: Low earnings with long working hours raise questions about fairness in competition and the role of regulation. | Photo: Christian Dubovan via Unsplash
Symbolic image of working conditions in driving services: Low earnings with long working hours raise questions about fairness in competition and the role of regulation. | Photo: Christian Dubovan via Unsplash

The "wirfahren" initiative by ride-hailing service Uber is causing criticism in Munich. The Taxiverband München and the Federal Association of Taxi and Rental Cars point out that, according to calculations, drivers would have to work over eleven hours a day to reach the legal minimum wage for eight hours. The cause, in their view, is the too-low mediation prices.

Investigations Reveal Grievances

According to the associations, the criticism is based, among other things, on findings from customs, the police, and the Munich District Administration Department (KVR). The authorities found violations of legal requirements during inspections. The focus is particularly on the circumvention of tax and social security contributions by individual providers in the car rental mediation sector.

Call for Minimum Prices

In order to reduce the pressure on prices and the resulting burden on drivers which is a concern for the associations, the representatives are advocating for the introduction of minimum prices. These are intended to help curb exploitative business models in the long term and ensure fair competitive conditions in the passenger transport market.

Role of the City of Munich

The Taxi Association points out that the City of Munich has the legal opportunity and responsibility to regulate the transportation offerings within its jurisdiction. Therefore, the recent steps taken by the city administration against certain business models in the rental car sector are viewed by the associations as a consistent measure for market regulation.

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