Cab industry: Uber rides to become more expensive again

The Saxon cab industry is hoping for a quick return to minimum tariffs for Uber and other hire car providers in Leipzig. "Only then can fair competition take place," said Jan Kepper, Chairman of the Saxon Taxi and Hire Car Association. Such tariffs had been in force in the city for a short time, but then a corresponding general decree was revoked following a legal dispute. He assumes that it will soon be reactivated, said Kepper.

Leipzig: We are sticking to the path we have chosen

The city announced that it would be sticking to its chosen path: Instruments from the Passenger Transportation Act are to continue to be used. These include minimum charges - which, according to a spokesperson, are of particular importance. However, he did not want to comment on the current case.

As of today, Heidelberg is the only major city in Germany to apply such minimum fares. Prices for rides with rental cars may only be a maximum of 7.5 percent below the rates set for cab drivers, as confirmed by a city spokesperson. Previously, Uber rides were around 35 percent cheaper. "The ruling is necessary to prevent dumping prices in the hire car sector - regardless of whether it is platform-based or not."

Uber criticized the decision. "Of course this is a black day for consumers," said a spokesperson. People on low incomes in particular would no longer be able to afford rides, it said in a statement.

Call for minimum charges to be set preventively

As far as he knows, there are currently no plans in Dresden or Chemnitz as there are in Leipzig or Heidelberg, Kepper continued. "This is due to the fact that the competitors there are not yet up and running." In Leipzig, the presence of Uber has already created "certain disadvantages" for the cab industry.

In general, he argued that such minimum charges should also be set preventively. The cab industry is subject to many more legal obligations than the hire car sector. This also makes a cab ride more expensive. "Competition cannot be won on price. As a result, cab services will eventually cease to exist," said Kepper.

Therefore, it must be prevented in advance that large companies destroy local markets and end up with monopoly positions: "If the price is only based on supply and demand, then you pay ten times as much at peak times," he warned.

Federal Taxi Association hopes for imitator cities

The Federal Taxi Association refers to more than 20 major cities that have similar problems with "dumping services". "We urge all affected cities in Germany to follow Heidelberg's example," said Managing Director Michael Oppermann. "We need the minimum prices, because we can only hold our own in fair competition."

The federal association "Wir fahren", on the other hand, announced that it would support affected car rental companies in taking legal action against the decision. According to the association, Heidelberg is the only major city in Germany with such a requirement.