Free Now no longer arranges rental car rides in Berlin
The mobility platform Free Now will no longer mediate rental car rides in Berlin and is leaving the business to competitors like Uber or Bolt. Instead, the platform will focus on the mediation of pure taxi rides in the future, Free Now announced. By withdrawing from this area, the company wants to
"send a clear signal against unfair competition and set its strategic focus on the established and close cooperation with taxi companies and agents," it said.
Unlike taxis, rides from rental car providers can only be booked through apps like Uber, Bolt, or previously Free Now. The drivers must return to the base after each ride and are not allowed to pick up new passengers off the street without a booking. Because they can adjust their prices to demand, they are often cheaper than conventional taxis.
```Taxi Industry Accuses Rental Cars of Unfair Competition
The taxi industry accuses the companies of unfair competition with a ruinous pricing policy for all parties involved. Last year, the Berlin Senate reviewed the entire fleet of vehicles on the rental car platforms Uber, Free Now, and Bolt and removed hundreds of cars. The reason for the blocking of the vehicles was allegedly missing, expired, or incorrect permits, which the State Office for Citizens' and Regulatory Affairs (Labo) had identified.
Minimum Prices for Rental Cars Possible?
Additionally, the state government wants to examine whether minimum prices for rental car providers might also be possible. As early as 2021, the city of Leipzig set minimum tariffs for rental cars. A company filed a lawsuit against this. The Leipzig administrative court decided in November of this year that while the minimum prices are generally permissible, they were set too high by the city. Similar lawsuits are to be expected in Berlin if a similar regulation is implemented.
Uber opposes such measures. If minimum prices for rental cars are introduced, people would more likely revert to using their own cars, the company stated with reference to its own survey. A reliable and attractive mobility mix is needed.
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