Ride-hailing fans among you can breathe a sigh of relief: The prices for Uber, Bolt, and similar services introduced by the City of Munich are no longer in effect for the time being. When traditional taxis were too expensive and public transportation caused too much hassle due to construction work, the services offered by ride-hailing companies were the ideal solution for many. The city’s new general ruling changed this, which angered both companies and customers alike. The ride-hailing providers filed a lawsuit—and won. According to the court , there can be no minimum fares for Uber and similar services in Munich.
The City’s Rationale
Munich had initially introduced the minimum fares because there was suspicion that the companies were not complying with the statutory minimum wage. They had also regularly disregarded other labor and social welfare regulations . Taxi drivers had also demonstrated in favor of fairer competition . In April, Munich adopted the general ruling, and it took effect in July.
It applied primarily to last-minute rides and set a minimum price of €5.20 per ride, plus an additional €2.70 per kilometer. Rides booked at least one hour in advance were exempt from this rule. The impact of the general orders was felt by ride-hailing providers: Bolt, for example , saw a 44% drop in demand. Taxi companies, on the other hand, enjoyed a slight increase. Uber, Bolt, and others fought back with a lawsuit and can now celebrate an initial partial victory.
Court Ruling: No Minimum Fares for Uber and Similar Services
The Munich Administrative Court has granted a total of five motions for preliminary relief opposing the introduction of minimum fares. As a result, several of these companies are not required to adhere to the minimum fares. Decisions in the main proceedings are still pending, but the court has classified the general ruling as “likely to be unlawful overall.”
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So in the future, you can once again look forward to affordable rides via ride-hailing services. Munich isn’t the first city to set minimum fares for services of this kind. The city of Cologne had done the same previously . However, the administrative court there had already overturned the measure in July of this year. Thanks to these precedents, you likely won’t have to worry about minimum fares for Uber and similar services in the near future and can enjoy rides that are up to 40% cheaper than traditional taxis. And maybe, thanks to Waymo, you’ll soon even be traveling without a driver at all.
