Petition launched: FFB taxi association demands minimum prices for rental cars in the district.

The Fürstenfeldbruck Taxi Radio Cooperative e.G. urges the district office to examine the introduction of a minimum fare for rental cars. The appeal is addressed to District Administrator Thomas Karmasin. Link to the petition at the end of the article!

The debate about fair competition conditions between taxi services and hire-car services has reached the Fürstenfeldbruck district. | Photo: T. Kanzler
The debate about fair competition conditions between taxi services and hire-car services has reached the Fürstenfeldbruck district. | Photo: T. Kanzler

The demand of the taxi cooperative rests on a possibility created by the legislator with the amendment of the Passenger Transport Act. Since 2021, municipalities can set minimum ride fares for hire-car services. The regulation is intended to prevent trips being offered at prices that are not economically sustainable in the long term and thereby distort competition.

A Look at Munich

As a model, the cooperative cites Munich, the state capital. There, policymakers and the administration have for some time been dealing with minimum prices for hire-car services, which are often mediated via platforms such as Uber. The background involved investigations that pointed to substantial price differences between taxi and hire-car offerings, as well as economically questionable rock-bottom prices.

Now, a similar approach should also be examined in the Fürstenfeldbruck district. The taxi radio cooperative calls for a market analysis modeled on the Munich model and the involvement of representatives from the taxi and rental-car trades as well as the municipalities in the decision-making process. In the end there should be a minimum transport fare that is aligned with the respective valid taxi tariffs.

Concern about price pressure

Platform-mediated rental-car offers are pushing more strongly into suburban areas and often advertise prices that are well below the costs of traditional taxi rides.

In the view of the initiators, this leads to a structural imbalance. While taxi companies are bound by government-set tariffs and transport and operating obligations, rental-car companies can set their prices flexibly. The consequence would be growing pressure on the profitability of the businesses, on wages and working conditions, as well as on the long-term stability of mobility provision.

More than just an industry conflict

The petition explicitly places the discussion in a broader context. A functioning taxi industry is part of the public provision of essential services. Especially outside urban areas, taxis take on tasks that go beyond the classic on-demand traffic. These include patient transport, school transport, night-time transport, or the connectivity to smaller municipalities.

From the cooperative's perspective, therefore, it's not only the economic situation of individual companies that is at stake. Rather, the question is how a reliable mobility provision in the district can be secured in the future.

Competition yes – dumping no

The proponents of a minimum fare for passenger transportation emphasize that they do not want to prevent competition. Rather, a lower bound should be set, below which trips can hardly be economically cost-covering. This should create fair market conditions without completely eliminating price competition.

In the view of the taxi cooperative, minimum prices could help prevent social dumping, strengthen legal employment, and secure the economic base of regional mobility providers. In addition, tax and social security shortfalls would be reduced, which can arise when business models are permanently based on prices that do not cover costs.

The petition makes clear that the discussion about minimum prices for rental cars is no longer limited to large cities. Also in the Munich area, the question is increasingly how new mobility offerings can be integrated into a competition that operates under the same rules for all market participants. And the petition also benefits the nearby large city of Munich—after all, many of Fürstenfeldbruck's taxis operate in the Bavarian state capital!

Here's the petition.

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