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Unfair competition with Uber & Co.: TMV calls for federal initiative – Ministry remains cautious
The taxi and rental car industry is on the move – but not just on the streets of German cities. Behind the scenes, a dispute rages over fairness, control, and the question of how much market the state should allow. In a letter to Federal Finance Minister Lars Klingbeil, the Taxi and Rental Car Association of Germany (TMV) strikes a clear tone. They warn against the erosion of the social market economy and criticize the lack of consistency in dealing with unfair competitors – especially platform companies like Uber.
The association complains about a situation that, in its view, is exemplified in Berlin: For years, around 1,700 rental cars have been operating illegally there – accompanied by tax evasion, undeclared work, and wage dumping. The result is a competitive environment that systematically disadvantages traditional providers.
“Predatory capitalists must not ruin our medium-sized economic landscape,” the TMV's letter states.
The association is calling for a legislative initiative at the federal level, a unified approach to municipal minimum transport fares, and an approach against platform practices at the European level.
Response from the Ministry of Finance
The response from the Federal Ministry of Finance is factual. They share the concern for fair competition conditions but refer to existing measures. State Secretary Dr. Steffen Meyer points to targeted checks by the Financial Control of Undeclared Work (FKS) in May 2025, during which companies in the taxi and rental car sector were inspected in cooperation with the police, regulatory authorities, and licensing offices. The aim is to systematically take action against dishonest practices. A modern risk management system, supported by data analysis, is intended to enable even more targeted inspections in the future. A corresponding draft law is in preparation.
At the same time, Meyer points to the different responsibilities: the implementation of new control instruments in the Passenger Transportation Act is the task of the states. Unified recommendations from the federal government are only sensible if there is prior agreement among the states—such as within the framework of a state working group. This approach has already proven successful in other issues, such as in the treatment of event transportation.
"The wheels grind slowly"
For the TMV, this is likely to be insufficient. The association criticizes that even after the reform of the Passenger Transportation Act in 2021, concrete implementations at the municipal level often take years to emerge. This is attributed to significant legal uncertainty—triggered by unclear responsibilities and the fear of lawsuits from platform operators. The result: Instead of market regulation, a patchwork of local unilateral actions—or inactivity—emerges.
This is not just about fundamental issues. The debate involves numerous small and medium-sized enterprises for whom ride services are a daily reality and a livelihood. They increasingly face an environment that permits digital market logics without adequately regulating their consequences.
Whether the federal government will take further action remains to be seen. The announced measures to combat illicit work are likely to be closely watched in the industry. What will be crucial is whether they take effect in practice—and whether further political steps follow at the federal and European levels. The TMV has signaled its willingness to engage in dialogue. For the time being, however, the impression remains that both sides agree on the analysis—but want to pursue different extents in consequence.
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