Ride-On Rentals in Berlin: A Tense Battle
Celebratory Event Held by Taxi Syndicate - Brake Manipulation Investigated - Innovation in the taxi industry marks a milestone, encountering resistance with the implementation of a new safety feature.
The Berlin taxi scene remains heated, with Leszek Nadolski, Chair of the Berlin Taxi Guild, admitting, "We've got a weak order situation," on the eve of the Guild's 125th anniversary. Despite this, many drivers depend on side-gigs with intermediary platforms such as Uber and alike to make ends meet. The arrival of fixed-price taxi fares a year ago hasn't significantly improved matters.
Despite the ongoing strain, Nadolski views the fixed-price option positively. This feature, offered by some taxi intermediaries, presents passengers with a transparent, range-based fare when booking, eliminating fare uncertainty. "Customers appreciate the price certainty," the guild chairman asserted.
However, Thorny Issues Arise
The tension in the taxi market persists. The guild takes issue with the competition from rental car platforms like Uber and Bolt, who, they claim, continue to undercut their prices. The most contentious point of strife is the so-called minimum prices: while taxi operators face minimum pricing restrictions, this does not apply to rental cars, allowing them to adjust their fares dynamically based on demand.
Unfair Advantage?
Rental car drivers are required to return to a company hub after each trip, unless they have a new booking. They cannot pick up fares spontaneously. Yet, from the taxi industry's standpoint, this flexibility gives rental cars an unfair advantage resulting from cheaper pricing. Thus, the guild urges the introduction of minimum fares for rental cars. "A level playing field would favor the provider with the better service and ride quality," the guild chairman hopes.
Senate Scrutiny
In January, the Senate vowed to scrutinize the prospect of minimum fares for rental cars, but has yet to report findings. As of now, no updates are available. However, a decision on this matter is anticipated this year.
Historical Precedent
In 2021, Leipzig set minimum fares for rental cars, prompting one company to initiate a lawsuit. Last November, the Administrative Court of Leipzig ruled that minimum fares were generally permissible, but the city's set minimums were deemed too high. Berlin could face similar judicial challenges if they implement minimum fares.
Cracking Down on Illegality
It seems that taxi industry concerns are gaining traction with the Senate, as they increased scrutiny on illegal operations on ride-hailing platforms. Last year, the State Office for Citizens and Ordnungsangelegenheiten inspected the entire vehicle fleet on rental car platforms Uber, Freenow, and Bolt, and removed hundreds of vehicles.
Mixed Reactions
The platforms have acknowledged this move, deeming it necessary, but criticize the regulatory process. They point to lengthy application processing times, lack of consultation, and unclear reasons for rejections. It appears that some rental car companies are rerigistering their fleets in small, overwhelmed municipalities on the outskirts of Berlin, contributing to concerns about the growth of the "shadow economy" in the car rental industry. As of June 30th, the Brandenburg Ministry of Transport, in collaboration with Berlin and county representatives, will discuss this issue.
- The Berlin Taxi Guild, led by Chairman Leszek Nadolski, is at odds with rental car platforms like Uber and Bolt, as they claim these companies undercut their prices, presenting a challenge in the taxi market.
- On a similar note, the guild has advocated for the introduction of minimum fares for rental cars to level the playing field and favor the provider with the better service and ride quality.
- Berlins Senate has expressed interest in scrutinizing the prospect of minimum fares for rental cars, but no updates have been reported as of now.
- In 2021, Leipzig set minimum fares for rental cars, leading a company to initiate a lawsuit, and potentially facing similar judicial challenges if implemented in Berlin.
