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Uber and Bolt in Munich: New minimum prices head to court
Since July 4, minimum prices apply for ride-hailing services like Uber and Bolt in Munich, aligning with the city's taxi tariff. The regulation is now before the courts. According to a spokeswoman for the Administrative Court, three urgent procedures against the corresponding general administrative order are pending. In the meantime, the city conducts spot checks to ensure the providers comply with the price floors.
Minimum prices are based on the taxi tariff
The taxi tariff, established by the City of Munich by bylaw, currently sets a base price of €5.90 and a price per kilometer of €2.70. For ride services, the surcharges prescribed for taxis are not taken into account in calculating the minimum prices.
For rides booked less than one hour before departure, the base price for ride-hailing services is therefore at least 5.13 euros. For up to and including seven kilometers, at least 2.43 euros per kilometer are due. For distances beyond that, a minimum price of 2.25 euros per kilometer applies.
Before the introduction of the regulation, the prices of ride-hailing services were on average around 40 percent below taxi prices.
Customs detects violations of social regulations
The background to the debate also includes working conditions in the car rental sector. According to the Munich Main Customs Office, ride-hailing services violated labor and social-law regulations almost nationwide. Provisions of the Minimum Wage Act were regularly disregarded as well.
Taxi drivers had demonstrated for fair competition and minimum prices before the introduction of the new price guidelines.
Bolt reports a clear decline in demand
According to Bolt, demand in Munich has fallen by 44 percent within one month since the new regulation. In addition, around 40,000 rides had no longer taken place. The company attributes this development to the higher prices.
Whether and to what extent the overall Munich ride-hailing market has changed since the introduction of the minimum prices is not evident from the available information.
The city monitors compliance with the guidelines
The District Administrative Office of the City of Munich checks compliance with the new price guidelines through random sampling. The authority currently does not publish the results of these inspections due to ongoing court proceedings.
According to a market observation by the taxi platform Freenow, around 50 percent of the offered rides do not adhere to the prescribed minimum price. There are clear differences between individual providers.
Taxi companies have told the city, according to the District Administrative Office, that the effects of the minimum fare prices on their business are easily noticeable. Freenow, by contrast, sees a more pronounced positive effect on the traditional taxi trade.
Lawsuits also in other cities
Munich is not the first major German city in which restrictions for ride-hailing providers are being legally reviewed. There have also been lawsuits in Leipzig and Cologne against corresponding requirements for ride services.
The three expedited proceedings in Munich are now to judicially review the general order on the minimum prices in effect since July 4. (Source: dpa/lby)
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