Essen Taxi Drivers Push for Minimum Fares amid Competition from Ride-Hailing Services
Taxi Drivers in Essen Call for Mandatory Minimum Fares amid Rising Competition - Taxi drivers in Essen call for set prices to combat competition
The streets of Essen's city center echoed with indignation as taxi drivers took a stand, blocking a major thoroughfare with a line of cabs and horns blaring. Over 140 drivers participated in the protest, decrying the surge of rental cars from companies like Uber and Bolt that offer rides up to 40 percent below Essen's regulated taxi fares.
Dirk Schäfer, spokesman for the Taxi Essen association, asserted, "We're calling for an end to social dumping and the implementation of minimum prices now." He went on to discuss the unique challenges faced by taxi drivers: whereas cabbies pay local taxes, are part of the public transportation system, and adhere to regulations like minimum wage requirements, rental car drivers reap fixed prices from international platforms that are unregulated and can dramatically fluctuate during peak periods. This, coupled with the influx of out-of-town Uber drivers during events, puts local taxi businesses at a severe disadvantage.
Only 420 of the 620 possible taxi licenses in Essen are in use, with Schäfer himself seeing a decline in income of around 30 percent over the past year or two. He concluded, "They work ten hours for 120 euros - that's below minimum wage."
The city of Essen is equally supportive of a minimum fare for rental cars and has commissioned a legal opinion to ensure this can be achieved. While authorities conduct regular checks, particularly during large events, to prevent unlawful actions by drivers from other cities, some have been operating illegally in the city.
Digging Deeper
- In Essen and across Germany, taxi pricing regulation contrasts sharply with that of rental cars and ride-hailing services, each operating under different legal frameworks.
- Taxis are subject to regulated fare structures set by local authorities, including minimum charges, per-kilometer rates, waiting times, and surcharges. Taxi fares are legally binding and monitored to protect consumers and maintain competition.
- Third-party ride-hailing services like Uber are less strictly regulated, with no mandated minimum prices. There has been ongoing debate in cities like Essen on the need for minimum fares to level the playing field between taxis and these services.
- Updates to the German Passenger Transport Act aim to clarify rules for new mobility services, including ride-hailing, and monitor developments that can impact pricing policies indirectly.
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- The Essen Taxi drivers, faced with intense competition from ride-hailing services, are advocating for the implementation of minimum fares similar to the regulated taxi tariffs.
- Dirk Schäfer, representing Taxi Essen, argues that rental car drivers, who are unaffected by local taxes, regulations, and minimum wage requirements, have an unfair advantage in the market.
- In an attempt to mitigate this disparity, the city of Essen has commissioned a legal opinion to establish minimum fares for rental cars, ensuring fair competition.
- With updates to the German Passenger Transport Act, the regulations for new mobility services like ride-hailing will become clearer, potentially impacting the pricing policies indirectly.
