
Thursday, 19 December
Price dumping at Uber, Bolt and co: Car-sharing prices to increase
The Berlin state government is taking steps to regulate the city’s car-sharing market, aiming to curb price dumping practices employed by companies like Uber and Bolt. A motion introduced to the House of Representatives proposes a minimum fare for rental car services. The move is designed to protect traditional taxi companies and prevent unfair competition, but will also mean an increase in rental costs for customers.
The proposal stems from concerns that the current pricing model, where platforms often take a significant cut of fares while offering low prices to customers, can lead to issues like welfare fraud, illegal work, and tax evasion. By imposing a minimum fare, the government hopes to ensure a more level playing field and discourage predatory pricing.
While the proposal has drawn support from the Taxi and Rental Car Association of Germany, it may face legal challenges. A similar measure implemented in Leipzig was declared permissible in principle by the Administrative Court, but the level of rates was criticised.
Berlin authorities have already taken steps to regulate the ride-sharing market, conducting extensive checks on vehicles and revoking permits for those found to be non-compliant. The introduction of a minimum fare could further tighten regulations and shape the future of ride-sharing in the city.