A Tense Birthday Bash in Berlin's Taxi Trade: The Guild's Perspective
Taxi Union Commemorates Anniversary - Upon Applying the Handbrake - Innovation in taxi services turns one, yet faces regulatory brakes
Welcome to the tumultuous world of Berlin's taxi scene – it's still a rocky ride, according to Leszek Nadolski, the First Chairman of the Guild of the Berlin Taxi Trade, who's marking the guild's 125th anniversary this coming Friday. "The order situation is precarious," he admits. Many drivers are resorting to spinning wheels on intermediary platforms like Uber and the like for supplementary income. The introduction of the fixed-price option for taxi rides a year ago hasn't exactly boosted utilization, either.
However, Nadolski views the move positively. The fixed-price option permits passengers to see a predictable price when hailing a taxi, with fluctuations within a tariff corridor based on ride length. The tension-laced dance with a relentlessly climbing taxi meter is thus a thing of the past. "Passengers welcome this sense of financial security," says the guild's chairman. Freenow recently endorsed a favorable review after a year of fixed prices in Berlin.
Yet, the taxi market's tranquility remains elusive. The guild contends the ongoing competition with rental car platforms like Uber and Bolt is a major headache. The primary bone of contention is the so-called minimum prices: While conventional taxi companies are prohibited from offering their services below a certain price floor, this rule doesn't apply to rental cars. Prices can fluctuate based on demand, and frequent service modification is possible.
Rental car drivers must return to their company headquarters after each ride, unless they secure a booking for another ride. They are also forbidden from picking up customers spontaneously on the way. From the taxi industry's perspective, the rental car platforms possess an unfair edge due to the lower prices. Thus, they're clamoring for the introduction of minimum prices for the rental car platforms, hoping for a level playing field.
The Berlin Senate indicated in January that it would investigate the idea of minimum prices. However, as of request, they've yet to complete their assessment and didn't provide a status update. The city of Leipzig implemented minimum fares for rental cars in 2021, forcing one company to initiate a lawsuit. It's unclear whether similar confrontations will arise in Berlin with a corresponding regulation.
However, it appears that the industry's concerns are resonating with the capital's politics. In addition to evaluating minimum prices, the Senate Administration has strengthened its stance against illicit companies on the platforms that have been conducting operations without a license. The State Office for Citizens and Order Affairs (Labo) carried out a comprehensive vehicle fleet audit on the rental car platforms Uber, Freenow, and Bolt last year and eliminated hundreds of cars.
The platforms described the measure as crucial and inevitable. However, they're now complaining about the approval practice of the lab. The approval process is lengthy, and there's insufficient consultation for rental car providers. Furthermore, new grounds for rejecting approvals frequently emerge, which are often confusing. It's suggested that several rental car companies are re-registering their fleets in smaller communities on the outskirts of Berlin, as the local authorities struggle to keep up with the influx of new vehicles, while the lab is no longer involved. "The seeds of the 'shadow economy in the rental car industry' are sprouting," says Nadolski from the taxi guild. The Brandenburg county association fears this expansion. At the end of June, the Brandenburg Ministry of Transport, along with Berlin and representatives of the counties, will deliberate on this issue.
The guild chairman, Leszek Nadolski, suggests that the introduction of minimum prices could provide a level playing field in the taxi market, addressing the concern of unfair competition from rental car platforms like Uber and Bolt. Meanwhile, the rental car platforms are facing challenges with the approval process and lengthy consultation periods, leading some companies to re-register their fleets in smaller communities, potentially cultivating a 'shadow economy' in the rental car industry.
