Heidelberg City to Impose Brakes on Uber and Similar Entities
In the historic city of Heidelberg, a new regulation has been implemented, mandating minimum prices for ride-hailing services like Uber[1][2][3]. This move aims to level the playing field between Uber and traditional taxis, as the city seeks to protect the economic viability of the taxi industry[1].
Before the introduction of the minimum prices, Uber rides were often up to 35% cheaper than taxi fares[4]. However, this new rule has significantly increased Uber’s ride costs, making them closer to taxi levels[1]. This change has led to a mixed impact on consumers.
Uber has voiced its concern, labeling the regulation a "black day for consumers," particularly affecting people with lower incomes who may rely on cheaper rides[1]. For instance, a ride from Heidelberg’s main train station to the castle, which previously cost €9 with Uber compared to up to €25 by taxi, will now see substantial savings diminish[1].
On the other hand, the taxi industry views this measure as a means of protecting licensed taxi drivers from unfair price competition[1][2]. Heidelberg considers taxis as a public service asset worthy of protection, arguing that Uber’s previous lower prices were due to subsidized rides, not sustainable market rates[1][2].
The city hopes to prevent "dumping prices" that undermine the taxi sector[1]. As a result, the fixed price offer for the "last mile" (distance between home and the nearest S-Bahn station) has been discontinued due to incompatibility with the new minimum tariff[1].
The taxi tariffs in Heidelberg are set by the city, and taxi companies claim they could not react to Uber’s competitive prices on their own due to these city-set tariffs[5]. If the new regulation stands, other cities might follow suit, potentially protecting the taxi industry nationwide[1].
However, Uber Germany CEO Christoph Weigler has stated that Uber as a platform will not sue, but several logistics and chauffeur companies might take legal action[2]. As of now, the city of Heidelberg has not yet been sued by Uber[6].
Currently, there are 95 cars operating on behalf of Uber in Heidelberg[7]. Many people in Heidelberg use Uber rides as a supplement to public transportation[8]. The distance of about two kilometers, which previously cost six euros, is now affected by the new minimum tariff[1].
In summary, the minimum price rule increases Uber’s ride costs close to taxi levels, aimed at preserving the taxi industry’s economic viability, but it also reduces the affordability of ride-hailing services for consumers, particularly impacting low-income riders in Heidelberg[1][2][3][4].
[1] The Local [2] Deutsche Welle [3] Handelsblatt [4] Taxi-Expert [5] Heidelberger Zeitung [6] Heidelberger Zeitung [7] Handelsblatt [8] Handelsblatt
Consumerswith lower incomes might face difficulties due to the increased Uber ride costs, as substantial savings from cheaper rides diminish, compared to traditional taxis. The taxi industry, on the other hand, views this measure as a means to protect licensed taxi drivers from price competition in the sports of ride-hailing services.
