Dortmund Imposes Minimum Fares for Ride-Sharing Services Amid Taxi Industry Disputes

Dortmund is set to introduce minimum pricing for ride-sharing services such as Uber and Bolt, a move aimed at leveling the playing field with the traditional taxi industry. The new regulation, effective September 1st, seeks to mitigate the competitive pressure faced by licensed taxis, which are bound by city-set tariffs.

Under the new rules, ride-sharing providers will be permitted to undercut taxi fares by a maximum of 15 percent for short-term bookings. This adjustment comes after previous attempts in cities like Essen and Cologne faced legal hurdles. Essen's initial minimum fare policy was halted following a successful urgent appeal at the administrative court, while Cologne's similar regulation is currently under appeal at the Higher Administrative Court in Münster.

These legal disputes highlight the ongoing tension between the regulated taxi sector and the rapidly growing ride-sharing market. Taxis adhere to fixed rates, while ride-sharing services, operating through apps, have often offered prices 30 to 40 percent lower than taxis, leading to significant competition.

Dortmund's city council revised its proposed regulation after considering judicial criticism of Essen's policy, which was deemed too vague. The revised ordinance specifically states that minimum charges apply only to rides completed entirely within Dortmund's city limits. This refined approach aims to ensure the regulation withstands legal scrutiny, following discussions with representatives from both the taxi and ride-sharing industries.