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Black-Red coalition to examine minimum fare for Uber and others.
The black-red coalition in Berlin is considering introducing a minimum fare for rental car companies like Uber or Bolt. In December, the House of Representatives initiated a proposal calling on the Senate to examine such a measure. The document will first be further discussed in the responsible parliamentary committee and is expected to be passed in the plenary session within the first months of the coming year.
The "specification of a minimum transportation fee for rental car services" should be "examined and, in the case of obvious competitive distortions or a disruption of the public interest in transportation, implemented," according to the proposal.
The intention is that rental car providers would no longer be able to freely set their prices and offer rides significantly cheaper than their competitors in the taxi companies.
Schopf: Current regulations lead to social fraud and undeclared work
“The mediation platforms take up to 30 percent of the fare as a commission – at the same time, dumping prices are offered,” stated SPD transport politician Tino Schopf. “It is therefore not surprising that the rental car business cannot be legally operated economically in the long run, but in practice often leads to social fraud, undeclared work, and tax evasion.”
Criticism from Uber
Uber criticized the initiative. "The introduction of minimum fares would result in rides becoming unaffordable for less affluent customers and local entrepreneurs generating less revenue," a spokesperson said in response to a dpa inquiry. "Furthermore, minimum prices would not encourage people to take more taxi rides but rather drive them back to private cars," he stated. There are also significant legal doubts about the permissibility of such a step.
Further tightening under discussion
The proposal includes a number of further tightening measures for the rental car industry. For example, the state office responsible for reviewing companies, the State Office for Citizens and Regulatory Affairs (Labo), is to be strengthened in terms of personnel and controls made more systematic. Joint inspections with customs and police are to be conducted at night as well.
Uber and Bolt do not operate their own fleets but instead mediate rides on their platforms to rental car companies. According to regulations, they must actually return to the company headquarters after each booked ride and are not allowed to pick up passengers along the way unless another ride is booked.
Court: Minimum Rates in Leipzig Too High
As early as 2021, the city of Leipzig set minimum rates for rental cars. A company filed a lawsuit against this. The Leipzig Administrative Court decided in November this year that although the minimum prices are generally permissible, they were set too high by the city. Similar lawsuits can be expected in Berlin with a corresponding regulation.
"This taxi motion by the SPD and CDU has nationwide signal effects," said Patrick Meinhardt, the chief executive of the German Taxi and Rental Car Association (TVM). "Instead of a review of the minimum fare, a clear yes to the minimum fare should stand at the end of the consultation."
Hundreds of Rental Cars Already Blocked
Last year, the Berlin Senate reviewed the entire fleet on the rental car platforms Uber, Freenow, and Bolt and removed hundreds of cars. The reason for blocking the vehicles was found to be missing, expired, or incorrect permits, discovered by the Labo.
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