Heidelberg is introducing minimum prices for rental cars – tariffs from August!

Heidelberg is introducing minimum prices for rental cars – tariffs from August!

Something is happening in the world of rental cars and taxis in Heidelberg. From August 1, 2025, the city will introduce a minimum transport charge (MBE) for rental cars. Thousands of taxi drivers have long called for such tariff corridors and minimum prices to be established to ensure fair competition. The new regulation aims to prevent dumping prices offered by platform-based car rental providers such as Uber. This was decided by the city through a general decree, which stipulates an MBE equal to the local taxi tariff minus 2.875%, with the exception of trips that are carried out exclusively for medical purposes. This measure could represent a turning point for local transport, as similar regulations have already been implemented in cities such as Leipzig and the Lörrach district. [Taxi Times] reports that the Leipzig Administrative Court has in the past confirmed the legitimacy of MBE for market regulation, but criticized the city's concrete implementation.

The issue of minimum transport charges is becoming increasingly important in Germany's legal landscape. In a recent ruling, the administrative court in Leipzig emphasized that cities are only allowed to take action against newer, mostly app-supported mobility providers such as Uber under strict guidelines. This arrangement shows how complex the legal context in which the cities operate is. The judges found that the MBE measure was permissible in itself, but that the amount of the MBE in Leipzig was considered excessive. The taxi companies complain about unequal treatment compared to the rental car companies, which often offer lower fares. [LTO] highlights that the protection of the taxi industry has been recognized as a common good worthy of protection.

Impact on mobility

The discussion about pricing in the passenger transport market raises important questions. Professor Dr. Stefan Korte and Ass. Iur. Nina Kunzi pointed out the change in mobility in an analysis. Traditional taxi services compete with providers such as Uber, which operate in 16 German cities and often offer lower prices. This could have long-term effects on public transport. Rural areas in particular are at risk of fewer journeys being offered due to competitive price differentiation - a phenomenon known as 'cherry picking'. [Beck] points out that some cities are taking measures to protect public transport. The legal basis raises questions, particularly with regard to possible violations of EU law.

The city of Heidelberg's decision to introduce this price control could be seen as a model for other municipalities. Herwig Kollar, President of the BVTM, sees this step as groundbreaking. Legal opinions also find that some rental car companies that work for Uber are subsidized locally. This could further strengthen the case for introducing an MBE.

outlook

Although the city of Heidelberg is setting a clear direction, it remains to be seen how the implementation could be legally challenged. In the past, there have been concerns as to whether such regulations remain within the scope of permissible antitrust law. In order not to endanger the functionality of the taxi industry, a balanced relationship between the interests of traditional taxis and the new mobility providers is necessary. The upcoming battle over market conditions in the mobility sector will continue to make headlines.