Munich Proposes to Increase Costs for Uber and Similar Services - Minimum Fare Rate Suggested
In Munich, the battle between traditional taxis and ride-hailing services such as Uber and Bolt is intensifying, sparking concerns over fair competition. The city's administration is actively proposing measures to level the playing field, with the introduction of a minimum price for ride-hailing services on the horizon.
A rising tension: Taxis versus Uber and peers
As night falls or commuters dash to their destinations, an increasing number of residents in Munich are opting for Uber, Bolt, and other ride-hailing services. The allure often lies in the cost effectiveness, a factor causing discontent within the taxi industry. Taxis are required to abide by fixed prices, whereas ride-hailing services remain unfettered by such restrictions.
Sibylle Stoehr, Green city councilor and head of the city's taxi commission, terms this state of affairs as "ruinous competition." She seeks to address this imbalance and restore fairness within the industry.
The proposed minimum price structure
The SPD and Greens have taken action to alleviate this inequality. The proposed plan includes:
- A minimum fare of 5.42 euros
- A price per kilometer of 2.60 euros
Should these measures be implemented, many short trips would see a significant rise in cost, thereby reducing the price advantage currently enjoyed by ride-hailing services over taxis.
Motives behind the proposed changes
Politicians' motivations extend beyond fair competition. SPD city councilor Micky Wenngatz explains, "This initiative encourages more sustainable and low-emission traffic." As the number of app trips increases, so does the frequency of empty journeys and traffic congestion.
A critical response from Uber
Naturally, Uber views the proposed minimum prices with apprehension. The company argues that such measures would primarily affect low-income individuals and potentially negatively impact local entrepreneurs.
The path ahead
On April 29, the city council's administrative committee will discuss and potentially approve the proposal. Upon its passage, the new prices could become effective promptly.
Looking ahead: Sign up for our newsletter
To stay abreast of the latest happenings in Munich, don't miss our free 95.5 web newsletter. It offers updates on top concerts, exclusive competitions, and insights into Larissa Lannert live - delivered straight to your inbox each week.
To sign up, click here.
[Enrichment Data Note: As of now, a publicly announced or finalized minimum price specifically for Uber and Bolt in Munich has yet to be released. However, the city council is actively deliberating regulation of ride-hailing services, including the possibility of a minimum wage for rental car drivers and other pricing regulations for platforms like Uber and Bolt. Keep an eye on reliable local news outlets such as Taxi Heute for updates on this developing situation.]
In the proposed regulation of the ride-hailing industry in Munich, a minimum fare of 5.42 euros and a price per kilometer of 2.60 euros are under consideration, aiming to level the playing field between traditional taxis and services like Uber and Bolt. However, Uber has expressed concerns that these measures could disproportionately affect low-income individuals and local entrepreneurs.
