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Wave of lawsuits against the LABO – How Uber, Bolt & Co. are going to court – and what that means for the taxi industry
A central arena of this shift is currently not the streets, but the courtrooms. More precisely: at the Berlin Administrative Court, where dozens of cases against the State Office for Citizens’ and Regulatory Affairs (LABO) are currently pending. The plaintiffs: private-hire companies that transport passengers via platforms such as Uber and Bolt —or at least try to. This is not about trifles, but about the survival of entire business models. And right in the middle of it: a taxi industry that has been under pressure for years—and may now hope that the wind is turning in its favor.
A Jungle of Lawsuits
There is no question of a single, unified lawsuit against the LABO. Instead, a wave of lawsuits by individual companies is rolling in: rental car firms that are challenging denied permits, revocations, and other decisions by the authority. According to the Berlin Administrative Court, these involve more than 60 proceedings, many of them still pending.
The reason: the LABO has tightened the reins. After years of criticism—among others from taxi associations—about insufficient oversight and allegedly lax application of regulations, the authority is now more closely. Rental car companies must prove that they have a functioning place of business in Berlin, that they comply with the legally mandated return-to-base requirement and that their vehicles are properly registered. And the LABO means business: in just the first months of this year, more than 100 permits are said to have been revoked.
Uber & Bolt: The Invisible Hand in the Background
Officially, it is not Uber or Bolt that are suing. It is the small to medium-sized rental car firms that drive for them. But off the record, it’s clear: the platforms provide legal support—indirectly or directly. Because without this fleet, the apps are worthless. And the LABO knows that. An example: A company registers an office in a Berlin back courtyard but is never seen there. No staff, no phone, no fleet—often just a mailbox. The authority calls them "ghost companies." In the taxi industry, they simply call them: market distorters.
Return-to-base requirement as a flashpoint
The so-called return-to-base requirement is particularly contentious. As is well known, rental car drivers may only accept new jobs after they have returned to their place of business. For traditional rental car companies that was never a problem—for app-based services it is a business risk.
"If the return-to-base requirement is consistently monitored and enforced, the Uber & Bolt model will collapse in on itself," says a Berlin taxi operator who prefers to remain anonymous.
And indeed: LABO evaluates GPS data, carries out inspections, and increasingly detects violations – with the result that permits are not renewed or even revoked.
Berlin courtroom: An unequal fight?
For many private-hire car companies, going to court is the last attempt to stay in business. A few even succeed: In around a third of the cases the plaintiff prevailed – often on formal grounds. But the administrative court frequently upholds LABO’s decision. Especially in cases of inadequate operating bases or blatantly implausible business models, the judiciary shows no mercy.
The taxi industry watches this with satisfaction – and with a certain irritation. Because while private-hire companies fight their way through the courts, taxi operators have always had to meet stricter requirements.
“We’ve been saying for years that many of these private-hire companies aren’t even operating legally. Now it’s becoming clear that we were right,” a Berlin taxi association said. “But it took a long time before anything happened.”
Market consolidation or power shift?
The wave of lawsuits is unsettling the market. According to industry insiders, the number of active private-hire vehicles in Berlin has halved over the past twelve months. Some speak of market consolidation, others of regulatory overreach. One problem remains: While a handful of professional private-hire operators with an office, dispatchers and vehicle maintenance genuinely form, alongside taxi companies, the backbone of passenger transport, new providers are still springing up like mushrooms – often with little substance and a lot of app support.
LABO announced it would tighten the review of new applications even further – a development that certainly plays into the hands of the taxi industry.
Conclusion: A taxi renaissance?
For many taxi operators, the moment feels like belated justice. For years, the market was distorted by an uneven game – now the referee’s whistle can finally be heard. It’s still unclear how the cases will end. But the direction is right: oversight instead of chaos, rules instead of rampant growth. The taxi trade still faces further challenges – digitalization, a shortage of new talent, image problems. But one thing is certain: If competition becomes fair again, the taxi is not a thing of the past – but part of the mobility solution of the future.
Sources: LABO, Berlin Administrative Court, own research
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