Starting this Sunday. - Berlin Taxis Receive Aid Against Uber: Implications for Consumers
Getting in a taxi in busy Berlin requires either bravery or a large wallet due to traffic jams, detours, and construction sites that can make a short trip from point A to point B costly. For a long time, ride-hailing services like Uber had an edge with passengers and drivers agreeing on a fixed price before the ride begins, which remains unchanged even if there are delays.
In response to demand from Berlin taxi companies, the city's government has made a decision that benefits them too: as of this Sunday, customers and drivers will be able to agree on a fixed price when entering or booking a taxi, similar to Uber.
The new rule, which was approved by the Senate last Tuesday, will be published in the Official Gazette and Laws and Ordinances on Saturday and take effect the following day. The traffic authority confirmed this information on Thursday, clearing any ambiguity about the start date.
Fixed price with range
Previously, fare calculation was chiefly based on the distance traveled. However, with pre-booked rides, the new regulation is now allowing taxi companies to offer fixed prices to passengers.
This is facilitated through software that initially calculates the price. The shortest route to the destination acts as the baseline for price determination. The final fixed price should fall within a certain price range around this figure. Price fluctuations of 20% above and 10% below are permitted.
This new regulation currently only applies to the Berlin city zone. Routes to the airport, for example, cannot be billed in this manner yet. However, discussions are underway to make this option available, according to Transport Senator Ute Bonde (CDU). The airport BER should become "soon" reachable with a fixed price, she added.
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With the new regulation, taking a taxi in Berlin now allows for fixed pricing, giving passengers predictability and potentially saving them money, especially during traffic jams or detours. This change might also attract more tourists looking for affordable mobility solutions during their tourism visits.
The upcoming changes in taxi pricing strategies may also influence the landscape of e-tourism, offering visitors the opportunity to pre-plan and budget their transportation costs more effectively, thereby enhancing their overall experience in the city.
