A Loud Stand for Fliament: Taxi Drivers in Essen Protest Uber-like Services' Cheap Rides
Essen taxi drivers push for implementation of minimum fare rates to counteract market competition - Taxi drivers in Essen urge for enforced minimum fares to combat competitive pressure
In a vibrant display of dissent, taxi drivers in Essen took to the city center, honking their horns in unison and lining up in a long queue, demanding regulatory measures against their rental car competitors, such as Uber. The rally's central slogan was "Stop Social Dumping - Minimum Prices Now," attracting about 140 individuals and 110 taxis, according to the police. A busy street, close to the town hall, had to be temporarily closed.
Dirk Schäfer, a spokesperson for the Taxi Essen association, argued that the number of rental cars from providers like Uber or Bolt has significantly increased in the city. These services often offer rides at 30 to 40 percent below the taxi tariffs set by the city, stated Schäfer. He petitioned for minimum tariffs to be imposed on rental cars and their numbers to be limited.
The Struggle to Keep Up Financially
Schäfer contended that taxi drivers contribute to the local economy and are part of the public transportation network. As entrepreneurs, they abide by numerous regulations, such as minimum wage. In comparison, rental car drivers receive fixed rates from international platforms, which are unregulated and can lead to cheaper prices, but also expensive surges during high demand, like during trade fairs, according to Schäfer.
The scene is often flooded with Uber drivers from outside Essen, particularly during trade fair times. The Essen taxi industry finds it hard to compete with the cheap competition, claimed Schäfer. Currently, only about 420 taxis are still operating in Essen out of the 620 licenses potentially available in the city.
A Decrease in Earnings
Schäfer, a 65-year-old self-employed taxi driver, reported that his income has dropped by around 30 percent in the last one to two years due to the lower earnings of rental car drivers. He asserted, "They work for ten hours and earn 120 euros - that's below minimum wage."
The City also Endorses Minimum Tariffs
A city spokesperson mentioned that the city also supports a minimum tariff for rental cars. To establish it legally, a study has been commissioned. Spot checks for violations, such as those committed by drivers from other cities, occur frequently during major events in Essen, for instance.
- Taxi
- Rental Car
- Uber
- Minimum Price
- Horn Symphony
- Minimum Wage
- Police
Further Insights:
- Regulations on taxi services in Germany may include minimum fare requirements intended to protect the industry and maintain a basic level of revenue for operators.
- Competition from ride-hailing services like Uber can lead to better service quality and potentially lower prices when regulatory environments permit flexible pricing.
- Car rental services primarily impact the automotive and travel industries rather than the taxi sector. However, indirectly, car rental price regulations could affect the broader transportation landscape by altering costs for consumers and businesses.
- The horn symphony from the lined-up taxis in Essen was a loud stand against rental car competitors like Uber, appealing for regulatory measures to establish minimum prices.
- Dirk Schäfer, a taxi driver and spokesperson for the Taxi Essen association, argued that the significant increase in rental cars has made it difficult for taxi drivers to compete financially, especially since they receive fixed rates from unregulated international platforms.
- Schäfer asserted that the 30 to 40 percent decrease in pricing offered by rental car services, such as Uber, has led to a 30 percent drop in his personal income over the past one to two years.
- In addition to taxi drivers, the city spokesperson supports a minimum tariff for rental cars to be imposed, although a legal study is currently being commissioned to establish it.
- While car rental services may primarily impact the automotive and travel industries, indirectly, car rental price regulations could alter costs for consumers and businesses within the broader transportation landscape.
