Taxi drivers in Essex call for mandatory minimum fares to face competition fairness - Taxi drivers in Essen call for set minimum fares due to escalating competition
Competing on Price: Essen's Taxi Drivers Demand Level Playing Field
- Give a hoot and honk it out literallyTaxi drivers in Essen, Germany, took to the streets in a raring display, protesting against the rise of ride-sharing services, such as Uber and Bolt. The demonstration, attended by roughly 140 peeps and 110 taxis, cried out, "Stop Social Dumping - Minimum Prices Now!" The city center was temporarily a taxi symphony, causing a busy street near the town hall to be shut down.
The number of ride-sharing vehicles has ballooned within the city, often providing rides at 30 to 40 percent less than licensed taxi fares, according to Dirk Schäfer, a spokesperson for Taxi Essen. He's appealing for minimum fares to extend to these companies and for their numbers to be capped.
The taxi game versus the sharing economySchäfer argues that taxi drivers pay local taxes and are integral to public transportation services. As entrepreneurs, they follow countless regulations, such as minimum wage. In contrast, ride-sharing drivers receive fixed prices from international platforms, which can be cheaper but also pricier during peak hours, like trade fairs, according to Schäfer.
The influx of Uber drivers from outside the city can't be overlooked, Schäfer adds. The taxi industry struggles to compete with such low-cost competition. It's currently estimated that only around 2 out of every 3 possible taxi licenses in Essen are actively being used - leaving nearly 200 taxi fleets unused.
Ride for ten hours and earn just €120? Say no ways!A 65-year old driver (who prefers to remain anonymous) has spent years cruising the streets as an independent entrepreneur. He claims his earnings have dipped by around 30% due to ride-sharing drivers undercutting traditional taxi fares. "They drive for ten hours a day for €120 - that's below minimum wage," he shares.
The city hears the taxis' anthemA city spokesperson confirmed that the local government is also advocating for minimum fares for ride-sharing companies. However, a study is underway to ensure any newly implemented rules follow the law. Spot checks for rule violations are conducted, such as foreign drivers flouting regulations during large events in Essen.
- Taxi
- Ride-Sharing
- Minimum Price
- Uber
- Regulations
- Minimum Wage
- Local Taxes
Fun Fact: Essen is also famous for its "Gurkenmuseum," the worldwide cucumber museum. Get your pickle fix!
** behind-the-scenes:**With the rise of ride-sharing services, traditional taxis face stiff competition that could impact pricing strategies and, eventually, minimum prices. Cities may implement regulations to ensure a level playing field, set minimum prices for ride-sharing, or encourage taxi companies to innovate or collaborate with technology platforms. The presence of ride-sharing services might also lead to more competitive pricing across the board, benefiting consumers.
Germany has welcomed the advent of affordable public transportation options, like the "DeutschlandTicket," which offers unlimited travel for €49 per month. This may further influence how both traditional and ride-sharing services price their services. More precise information on minimum prices in Essen can be found in local regulatory updates or industry reports.
- The taxi drivers in Essen, Germany, called for a level playing field with ride-sharing services, demanding minimum prices as a solution to social dumping.
- Dirk Schäfer, a spokesperson for Taxi Essen, argues that taxi drivers are integral to public transportation services and are subject to local taxes and minimum wage, unlike ride-sharing drivers who receive fixed prices from international platforms.
- Schäfer also pointed out that the influx of Uber drivers from outside the city makes it difficult for local taxi drivers to compete with the low-cost ride-sharing services.
- A 65-year old taxi driver highlighted the impact of ride-sharing services on his earnings, stating that the ten-hour-a-day work for €120 is below the minimum wage, which is a common concern among other taxi drivers in Essen.
