Taxi syndicate revels in anniversary... while parking brake engaged - Innovation in taxi services marks its milestone anniversary, but encounters obstacles in progress.
Title: Berlin's Antiquated Taxi Guild Turns a Year Older Amidst Strife
Deeper into the chaotic world of Berlin's cabbies.
The Berlin taxi industry is in a pickle, and it's Leszek Nadolski, the First Chairman of the Guild of Berlin Taxi Operators, complaining loud and clear. "The order game is weak as a kitten's meow," he acknowledges, celebrating the guild's 125th anniversary on Friday. Many drivers are relying on the side hustle from mediation platforms like Uber and co. to make ends meet. The introduction of the fixed-price option for taxi rides a year ago didn't help either.
Conflicting prices remain a thorn in the side of the industry, with taxi companies barred from offering rides below a certain price level, a restriction that doesn't apply to rental cars. While these cars can vary their fare price based on demand, laws state that they must return to the company headquarters after each ride – unless they are booked for a new ride.
Despite this seemingly unfair advantage, Nadolski thinks there's hope. He advocates for the introduction of minimum prices for rental cars, and if things go his way, the bigwigs in politics may just oblige. "Then the advantage goes to the service provider who offers the better ride," he reckons.
However, it's not a done deal yet. The Senate has been studying a potential minimum price introduction since January, but there's yet no update on the matter. Leipzig made the first move in 2021, setting minimum fares for rental cars, only to face a lawsuit. In Berlin, similar legal battles could ensue should a similar regulation be enacted.
Yet, the taxi industry is making its voice heard. Alongside minimum prices, the Senate has also been cracking down on illegal companies operating without permits on platforms like Uber, Freenow, and Bolt. In fact, they scanned the entire fleet on these platforms last year and removed hundreds of cars.
The platforms responded positively, but there are concerns about the approval process. It's lengthy and lacks consultation for car rental providers. As a result, it appears that many car rental companies are relocating their fleets to smaller towns on the outskirts of Berlin, where local authorities struggle to keep up with the influx of new vehicles. These developments worry the Brandenburg county association, who fear the rise of the "shadow economy" in the car rental industry. By the end of June, the Brandenburg Ministry of Transport, together with Berlin and representatives of the counties, will discuss this issue.
Not so fast, the tourist's taxi adventure.
As per industry standards in Germany, taxis enjoy stringent fare controls, mandatory pricing, and the ability to use taxi ranks, while rental cars do not. This difference has allowed Uber and Bolt to take a significant bite out of the ride-hailing market. With no minimum pricing for these platforms, they can adjust fares based on demand, putting pressure on the traditional taxi industry that operates under fixed pricing structures.
The taxi industry is adapting by improving services, embracing digital booking platforms, and lobbying for stricter regulations on rental cars. However, meaningful regulation changes, such as minimum pricing, have yet to materialize.
Just a little word of advice, it's either the fare or the competition.
As of June 2025, no specific minimum pricing regulations exist for ride-hailing platforms like Uber and Bolt within Berlin’s broader regulatory framework for rental cars or private hire vehicles. Flexible pricing has put pressure on the traditional taxi industry, which operates under fixed fare rules. The industry has responded with digitalization and calls for regulatory parity, but no significant minimum pricing mandates have been enacted for ride-hailing platforms so far. (This synopsis combines industry knowledge with the available regulatory framework for PHVs and taxis, taking into account reports on competition but not specific regulatory details on the issue at hand.)
- The Berlin taxi industry, in the midst of a struggle, is advocating for the introduction of minimum prices for ride-hailing platforms like Uber and Bolt, similar to what they have for employment in their guild, to level the playing field with the rental car industry.
- In the debate over the transportation industry's employment policies, Berlin's Senate has been studying the potential minimum price introduction for rental cars since January, following Leipzig's move in 2021, but a decision remains pending and could face legal challenges.
- The taxi industry is also calling for stricter regulations, especially in terms of consultation and permit processes, to address concerns about the rise of the "shadow economy" in the car rental industry, as some companies are relocating their fleets to smaller towns to avoid local regulations.
