Cologne introduces minimum prices for ride-sharing services to ensure fair competition

Cologne has introduced minimum pricing for ride-sharing services, a move aimed at leveling the playing field between taxis and app-based transportation. Under the new regulation, services like Uber and Bolt can charge no more than 20% less than a taxi fare for the same journey.

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That minimum prices are now starting is a relief for the entire industry.

City officials stated that the objective of this general decree is to establish fair and equal competitive conditions within the local transport market. Alexander Mönch, Germany's head of the taxi-hailing platform Freenow, welcomed the decision, calling it a relief for the industry and praising Cologne for its "pioneering spirit." He urged for uniform framework conditions to be established at the federal level.

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Cologne is demonstrating real pioneering spirit here.

However, the new rules have drawn criticism from some quarters. Max Zombek of the "wirfahren" federal association, representing ride-sharing companies, argued that the regulation restricts price flexibility. He expressed concern that individuals who previously relied on cheaper ride-sharing options due to cost constraints might now be excluded from affordable mobility.

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We need price flexibility in the market.

This development follows a similar attempt in Essen, which introduced minimum prices for ride-sharing services earlier this year. However, a court ruling in April suspended Essen's regulation, deeming it unlawful in its current form. Meanwhile, Cologne's city council also approved an increase in the taxi kilometer price, from 2.60 to 2.90 euros, which is now also in effect.

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People who could not afford a taxi for price reasons until now will be excluded from affordable mobility by the new regulation.