UBER & Co. under pressure: MOLO warns against unfair competition in Rhineland-Palatinate transport

More and more ride-hailing platforms are pushing into cities such as Mainz and Trier. The MOLO association thus sees taxi companies, rental-car operators and public transport as being threatened – and calls for minimum prices as well as stricter controls.

MOLO warns of competitive distortions caused by ride-hailing platforms and calls for minimum prices as well as stricter controls in Rhineland-Palatinate. | Stock image: AI-generated
MOLO warns of competitive distortions caused by ride-hailing platforms and calls for minimum prices as well as stricter controls in Rhineland-Palatinate. | Stock image: AI-generated

MOLO, the mobility association, warns about the effects of digital ride-hailing platforms such as Uber on the mobility structure in Rhineland-Palatinate. According to the association, these platforms are increasingly expanding their business to smaller large and mid-sized cities such as Mainz, Ludwigshafen, Ingelheim and Trier. This would intensify competitive pressure on the regional taxi trade and public transport.

Unequal Competitive Conditions

MOLO critiques, especially, the different legal frameworks between taxis and rental cars that are mediated through platforms. While taxi companies are bound to fixed tariffs, concessions and requirements, rental car operators are not subject to tariff obligations. Platform operators could therefore operate with prices that, in the association's view, do not reflect the actual operating costs or fair wages. This practice endangers economically operated taxi companies that provide region-wide mobility services.

Traditional car rental companies not the focus of criticism

MOLO emphasizes that the criticism is not directed at the traditional car rental sector. These operators have been a reliable part of the public mobility system for years, especially for transporting patients and students. They operate under the same quality standards as taxi companies and contribute to the population's basic mobility. According to the association, the only problematic models are platform-based models that rely on price dumping and lack of regulation.

Risks to public transport

According to the association's assessment, the expansion of platform offerings also affects public transport (ÖPNV). If trips offered through digital intermediaries become cheaper at short notice than bus or train, this could lead to a migration of passengers — especially in off-peak times and on short routes. Such a development would jeopardize the profitability of ÖPNV and hinder the implementation of sustainable, integrated mobility concepts.

Discussions with municipalities and appeal to licensing authorities

MOLO says it is already in discussions with the Mainz city administration about possible countermeasures. Further discussions with the city of Trier are in preparation. The association calls on the licensing authorities to critically examine applications from platform companies and to deny approvals if the business models are not based on a sustainable economic foundation.

Demand for minimum charges and stricter controls

To safeguard fair competition conditions, the association points to § 51a of the Passenger Transport Act, which enables municipalities to set minimum charges for rental cars when this is in the public interest. MOLO calls for Rhineland-Palatinate cities such as Mainz, Trier or Ludwigshafen to also introduce such regulations – similar to Heidelberg already.

Furthermore, the association advocates for consistent monitoring of the return-to-base obligation of rental cars as well as for intensified controls by regulatory offices, police and customs. Closer cooperation between the cities in the Rhine-Main and Rhine-Neckar regions should help to avoid distortions of competition.

Association background

The MOLO – Mobility & Logistics Rhineland-Palatinate e.V. represents the interests of the transport, freight, and logistics sector in the state. It bundles the activities of the member associations VDV Rhineland e.V. and VVRP Rheinhessen-Pfalz e.V., which together represent around 1,400 companies from the fields of goods transport, furniture transport, bus, taxi, and rental-car transport.

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