Transportation service - Fixed prices for Berlin cabs: Offer is accepted
One month after the introduction of fixed prices for taxi rides in Berlin, two mediation platforms are drawing positive conclusions. "We had a bit of a scramble to make it work with the fixed prices before the start of the European Football Championship - and the receipt has paid off," said Alexander Mönch from Freenow to the German Press Agency. Currently, about 25 to 30 percent more taxi rides are being booked through the platform.
The taxi industry had long demanded fixed prices. It hopes to achieve a better competitive situation against ride-hailing services like Uber or Bolt, more demand, and increasing revenues. Customers can see in advance how much they have to pay for the planned ride with the platforms.
Uber is also reporting happily about fixed prices
The new fixed price must move within a tariff corridor that is based on the length of the route. It may deviate a maximum of 20 percent above and 10 percent below. "The exact fixed price is set by an algorithm of ours - depending on the current offer and demand," said Mönch from Freenow.
Uber is also reporting positively about the first month with fixed prices - that is, exactly the company against which the taxi industry is defending itself with fixed prices. Uber mediates not only car rentals but also rides with classic taxis through its app. The demand for this has been very strong since early June. "The number of rides that were assigned to taxi drivers and taxi drivers through the Uber app has more than doubled," Uber reported.
Number of taxis in Berlin constant - but fewer companies
As of May 2024, there were 5,616 taxis licensed in Berlin. According to Mönch from Freenow, Freenow works with 3,000 of these in the capital. While the number of taxis has remained almost constant since the beginning of the year, the number of companies is declining continuously. Currently, the slightly more than 5,600 vehicles are provided by 1,721 companies (May 2023: 1,879).
Leszek Nadolski from the Berlin Taxi Union did not want to make a balance after the short time with fixed prices. He emphasized, however, that he saw a lot of potential in it. The industry wants to explore new ways - price security and transparency are particularly important.
Freenow no longer invests in car rental business
The number of rental cars that can be booked approximately via Uber and Bolt has decreased by around 400 to 4,074 since the beginning of the year. The figures are published monthly by the Berlin Office for Citizen and Administrative Affairs.
Freenow can also book rental cars instead of taxis. Mönch emphasized, however, that the company no longer invests in this business model and concentrates completely on the taxi market. Correspondingly, rental car companies are increasingly withdrawing from the platform.
- The German Press Agency reported that Freenow, a mediation platform, experienced an increase in taxi bookings following the introduction of fixed prices in Berlin, which occurred a month before the European Football Championship.
- Uber, another ride-hailing service, also reported positive results after implementing fixed pricing, with a significant increase in assigned rides through their app.
- After the introduction of fixed prices, some taxi companies have seen a decrease in the number of rental cars available on platforms like Uber and Bolt, according to data from the Berlin Office for Citizen and Administrative Affairs.
- In response to these changes, Freenow has decided to cease investing in their car rental business model and focus solely on the taxi market, as indicated by Mönch from Freenow.
