Ubers to get more expensive in Heidelberg as city introduces minimum fares

Heidelberg has become the first major German city to introduce minimum fares for rideshare apps like Uber and Bolt. While the app says the significant price increase is a blow for passengers, taxi drivers hope that other cities will follow suit. 

Ubers in Heidelberg cannot charge significantly less than taxis

The city of Heidelberg in Baden-Württemberg has taken decisive action against dumping prices in the rideshare sector. Effective immediately, taxi apps like Uber, Bolt and others may only set their prices at a maximum of 7,5 percent lower than the rates set for regular taxis; previously, Uber rides were around 35 percent cheaper. 

“This order is necessary to prevent dumping prices in the rental car sector - regardless of whether they are platform-based or not,” a city spokesperson confirmed to Tagesspiegel. 

The change will have a marked impact on the prices passengers pay. Tagesspiegel gives the example of a ride between Heidelberg Central Station and the city’s famous castle - a journey of approximately 15 minutes. Previously, an Uber would cost around 9 euros, whereas a regular taxi would cost around 25 euros. Under the new rules, Uber will be forced to charge almost 23 euros, a 155-percent price increase. 

Uber says decision will make rides unaffordable for many

The decision has, unsurprisingly, been criticised by Uber, with a spokesperson calling it a “dark day for consumers”. The company added that the move would put taxi journeys beyond the means of people on low incomes. It seems likely that Uber will take legal action against the decision, but this is yet to be confirmed. 

The Federal Taxi Association, on the other hand, welcomed the news and said it hoped other cities in Germany that also have “dumping ride services” would follow suit. “We strongly urge all affected cities in Germany to follow Heidelberg’s example,” Managing Director Michael Oppermann told Tagesspiegel. “We need minimum prices because we can only assert ourselves in fair competition.” 

The decision marks yet another blow for Uber in Germany, which has frequently had its ambitions squashed by local regulations. As well as facing intense scrutiny over its business model, Uber has also faced multiple court cases, protests and bans, accused of breaking local transportation laws and violating anti-competition laws.