Dispute over ride-sharing service between traditional taxi drivers and Uber in Bremen
In recent protests across German cities, the traditional taxi industry has voiced concerns about uneven competition from ride-hailing platforms like Uber and Bolt. The central issues revolve around fair competition, minimum pricing, and regulatory oversight.
The taxi industry argues that ride-hailing services operate under more lenient standards, creating an unfair advantage. They claim that these platforms can set prices below regulated minimums, potentially have less oversight on safety and service standards, and face fewer regulatory burdens [1][4][5].
To level the playing field, the taxi industry has put forth several key demands. One of the most significant is the enforcement of minimum pricing for all passenger transport services. This aim is to prevent ride-hailing companies from undercutting prices and driving down fares, which taxi drivers believe compromises their livelihoods [2].
Another demand is stricter regulations for ride-hailing services to create a level playing field. The Federal Association of Taxi and Mietwagen has called for the introduction of minimum fares for all ride-hailing services to prevent predatory competition [6].
In response, Uber, a prominent player in the ride-hailing market, advocates for "liberalizing taxi prices through flexible pre-set prices" to help taxi companies increase their revenues [7]. Uber sees itself as a partner of the German taxi industry and cooperates with several thousand taxi drivers nationwide.
However, Uber spokesperson Oliver Fritz argues that taxi prices in Germany are already high, leading to low utilization of taxis compared to rental car companies [8]. Fritz opposes the introduction of minimum prices for rental cars, believing that many people would switch back to using their own cars.
As of early July, there are 465 taxis in the city of Bremen, and 261 ride-hailing vehicles. In both cities, the price for a taxi ride can increase due to waiting times, with Bremen's price increasing by ten cents per 9.47 seconds and Bremerhaven's by ten cents per 10.29 seconds [3].
In Bremen, the minimum fare for a taxi ride is 4.80 euros, plus 2.70 euros per kilometer, while in Bremerhaven, the fare is 2.40 euros per kilometer between 6 a.m. and 11 p.m. [9].
These protests signify that the competition with ride-hailing providers has reached a critical point. Oppermann, a representative of the taxi industry, states that the key change in competition is the digitalization of customers through the widespread use of smartphones [10]. According to Oppermann, customers can now order rental cars spontaneously via an app instead of hailing a taxi, making them less dependent on taxis for spontaneous rides.
As the debate continues, both sides strive to find a balance that ensures fair competition, maintains consumer choice, and supports the sustainability of the taxi industry.
The taxi industry in Bremerhaven, facing competition from ride-hailing services, calls for stricter regulations to level the playing field, including the enforcement of minimum pricing and stricter oversight on safety and service standards for these platforms. Meanwhile, financial institutions might find opportunities in this ongoing debate, as the sustainability of the traditional taxi industry and the future regulatory landscape could significantly impact the transportation and business sectors.
