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Unlawful tactics in car rental firms? Nation urges intervention

Using rental vehicles, commuting services via app for ride-sharing are accessible. (Archival...
Using rental vehicles, commuting services via app for ride-sharing are accessible. (Archival snapshot) Image shows a ride-hailing app.

Illegally Operating Car Rental Firms Cause Stir in Brandenburg - What's the State's Move?

Questionable practices in vehicle rental businesses? Nation recommends intervention - Consultation Held on Proposed Worker Radiation Protection Directive by Commission

Here's the lowdown on the chaos brewing in the car rental scene, specifically in Brandenburg, where county officials are up in arms over allegedly shady business practices by these companies. On June 25, the state is set to discuss this matter with Berlin and local representatives.

The beef? Car rental companies are relocating from the capital to Brandenburg, escaping tighter control, as per the Landesamt für Bürger- und Ordnungsangelegenheiten (Labo) in Berlin, who've accused these rogue operators of gaming the system. However, you'll often spot their vehicles cruising the streets of Berlin. The communal association of counties wrote a letter to the Ministry of Transport in Potsdam, stating that the situation has worsened as companies keep applying to register more and more rental vehicles. Fears of an expanding "shadow economy" in the car rental industry are looming. You might remember RBB's earlier reports on this issue.

Berlin has been taking action against car rental companies breaking the law and submitting forged documents for years now. In 2024, the Senate blocked many car rental vehicles mediated via ride-hailing platforms. Either they didn't have valid permits, they weren't covered by an existing permit, or their stated business location didn't match the permit, as stated back in April.

Tidal Wave of Registration Applications

The Brandenburg County Association's letter, obtained by dpa, reveals that "for example, in one county, a further 11 applications for the registration of another approximately 300 vehicles have been submitted." Another county reports a weekly increase in applications with up to 85 vehicles. To handle this influx, the counties are calling for state support.

The counties and Berlin's Labo have been exchanging information since autumn 2023, with a focus on companies moving from Berlin to the surrounding areas, as confirmed by a spokeswoman for the Berlin Senate Department for Transport.

Counties Overwhelmed by Workload

The County Association considers it crucial for the Brandenburg Ministry of Transport to develop a strategy for a unified approach. "The responsible licensing authorities in the counties alone cannot cope with the considerable increase in workload and the requirement to proceed promptly and meticulously with inspections and intensive controls against illegal passenger transport," the association states.

A joint database with Berlin has been proposed to combat this issue. The Ministry of Transport has pledged assistance, acknowledging that "it is particularly challenging for the affected licensing authorities to be exposed to a special workload due to the increased relocation of car rental companies from Berlin." From the County Association's viewpoint, a joint database of Berlin and Brandenburg should be established, documenting companies and individuals from whom concessions have already been revoked.

Further Insights:

  1. TMV's Concerns: The Taxi and Mobility Association (TMV) is keeping a close eye on illegal practices in the rental vehicle sector. In Berlin, around 1,700 rental vehicles are said to operate without proper authorization, with TMV suspecting a wide range of illegal activities.[1]
  2. Tamper Protection and TSE Demand: TMV is also advocating for tamper-proof odometers (TSE) to combat fraud in rental car traffic, part of broader efforts to curb illegal practices in the sector.[2]
  3. Brandenburg Countermeasures: Brandenburg is gearing up to counter illegal rental cars, although specific details are unavailable in the available information.[2]

For more detailed and specific information, you'd need to refer to direct reports or statements from the Ministry of Transport or the relevant authorities in Brandenburg and Berlin.

  1. The communal association of counties in Brandenburg has appealed to the Ministry of Transport in Potsdam for vocational training in regulatory compliance, as the influx of car rental companies from Berlin has created a significant workload that current authorities are struggling to handle.
  2. In light of the increasing concern over illegally operating car rental firms, there is a growing need for public-transit and transportation businesses in the region to collaborate financially with the state, ensuring industry standards are upheld and the shadow economy in the car rental sector is minimized.
  3. To effectively curb the expansion of the "shadow economy" in the car rental industry, the Brandenburg Ministry of Transport is considering the establishment of a joint database with Berlin, documenting companies and individuals from whom concessions have already been revoked, as a part of their community policy toward addressing vocational training and regulatory compliance.

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