The allegations of taxi entrepreneurs against travel agents such as Uber and Bolt are tough. There is talk of undeclared work, social security fraud, lack of permits and bypass of compulsory insurance. In it, the taxi industry sees a ruinous competition that endangers its business. The unification of the Frankfurt taxi companies argues that the trips mediated via the Uber or Bolt apps could only be offered so cheaply because the rental car companies that take over these chauffeur services exposed their drivers. A minimum price per kilometer of 2.20 euros, at Taxis in Frankfurt it is currently 2.40 euros, according to the taxi association, which is some chance for a fair competition. She therefore called for a rally on the Römerberg for Tuesday.
The matter is very different with the traffic intermediaries and rental car companies. “Not rental cars are the problem – but the price policy of the taxi work,” says the Federal Association of Wirfahren, which indicates that the interests of 2000 rental car companies and more than 45,000 drivers in Germany. A spokesman for Uber warns, minimum prices made the trips a luxury goods. Taxi driving in large cities is already above average.
The demand for minimum prices for rental cars “Economically completely emptiness”, criticizes the association Wirfahren. The sales could not be increased. Rather, price flexibility is the keys to increase the utilization in the event of a demand. It is not for nothing that hotels, airlines or Deutsche Bahn have been relying on dynamic pricing models for years, the association argues. “Anyone who limits this flexibility in the rental car industry, which is now profitable today, risk lower sales with immediate consequences for employment.” Because rental car companies would have to relieve drivers when they are falling, “although these jobs in particular enable many people with a migration background to get started with a regular employment relationship”.
Criticism of working conditions
Hans-Peter Kratz, the chairman of the Frankfurt Taxi Association, speaks of a “anti-social system with precarious employment relationships as a sham self-employed with an increase”, to which one has to end. It could not be concerned that regularly employed drivers subsidized the dumping offers of the rental car companies with their social security contributions. In his view, a minimum price is the only way to get this.
Driving brokers and rental car companies, on the other hand, argue that minimum prices would also be of no use to the taxi industry. “Because consumers would rather use their own cars more often than switch to taxi,” said the association. There you also consider minimum prices to be legally questionable and lead: “The city of Leipzig has just had to collect its minimum price regulation, mind you for the second time.” Instead of making rental cars more expensive, the taxi business should get the chance to become more attractive again, the association demands. This requires free pricing on the order market. Instead of rigid tariffs, there would then be the possibility to improve the utilization through consumer -friendly prices.
According to a Uber spokesman, the utilization of the driving services is about 50 percent, while it is 25 percent at taxis. This is also why driving services could offer different prices. They were based on the market. So it could be that after the final whistle of a harmony game in the stadium, the price for an override is higher due to the high demand than for a taxi.
Uber also points out that the taxi industry benefits from a reduced VAT rate of seven percent, while driving services paid 19 percent. And the argument of the taxi industry, replacement traffic for buses and trains or doctor trips for the sick could only be maintained if you no longer compete against the cheaper trip brokers, you reject at Uber. In other countries, Uber also has such services on offer. There are also taxi companies that offer their trips to the Uber app.
The fact that there are black sheep among the rental car companies that did not pay attention to the regulations when using the drivers. However, official checks are required and desired here that Uber could not do that.
The rental car entrepreneurs from Freenow get headwind. As of July 1st, this platform stops the placement of rental cars in Cologne, as reported by the recent company by the US provider Lyft. “We are relying on the taxi industry-because it is the more reliable, more transparent and more sustainable solution for urban mobility,” explains Alexander Mönch, President of Freenow in Germany and Austria, the step and adds: “Ruinous prices and opaque structures in the rental car sector contradict fair competition.” He speaks from the soul to the taxi company, who count on more 1200 participants on the Römerberg on Tuesday.
