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New Uber rules in Munich: Why rides could be more expensive now
Since July 1, binding minimum prices for ride-hailing platforms such as Uber and Bolt apply in Munich. The regulation applies to all trips within the city area, regardless of where the respective company has its headquarters. The basis is a general order issued by the City of Munich. With the measure, according to the city, equal competitive conditions between taxi companies and rental-car providers are to be created.
Prices are aligned with the taxi tariff
The minimum prices are aligned with the applicable taxi tariff. While the taxi tariff provides a base fare of 5.90 euros and 2.70 euros per kilometer, for rental-car trips a base price of 5.13 euros applies, a per-kilometer price of 2.43 euros up to and including seven kilometers, and 2.25 euros for longer distances.
There is an exception for trips that are booked with the company at least one hour before departure. For these trips, the minimum prices do not apply.
Discounts still possible
Discounts remain permissible according to the city. However, they must not result in the actually paid fare falling below the prescribed minimum price.
The city cites competition and transport policy as reasons
According to the city, prices of taxi-like ride services have so far averaged around 40 percent below taxi fares. The administration also points to systematic violations of labor and social-law regulations. At the same time, the city fears that particularly cheap ride offers could attract passengers away from public transport. The measure is therefore also part of the municipal transport strategy.
Diverse reactions from the industry
The Federal Taxi Association regards the introduction of minimum prices as an important signal for fair competition and an economic basis for taxi companies. Freenow points to experiences from Cologne, where comparable minimum prices had already been introduced at the beginning of June. According to the company, the economic situation of taxi drivers had improved there.
Uber, by contrast, criticizes the regulation and expects that an average ride will be eight euros more expensive. According to the company, Munich would thus become one of the most expensive cities in Europe for ride-hailing services. Bolt also opposes the regulation and describes it as a de facto 'taxi tax'. (Source: dpa)
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