Is the taxi industry Uber's enemy or partner?
Uber vs. Classic Taxi. In Germany, this was a rivalry for years, not a partnership. Now, both sides are moving towards each other. There's no more talk of the "Asshole Taxi" at Uber, but outside the major cities, everyone is still cooking their own soup.
There are rivalries that have a special edge to them. For years, the relationship between Uber and the German taxi industry was one of them. Ten years ago, Travis Kalanick, founder and then CEO of Uber, declared that they were fighting against an "asshole named Taxi." The German taxi industry accused the new competitor of predatory pricing and filed lawsuits against the company.
"In the past, we certainly had problems getting taxi drivers excited about working with us," says Uber Germany CEO Christoph Weigler in the ntv podcast "Startup - Now Tell The Truth." "Initially, we ourselves were to blame for not positioning ourselves smartly against the taxi industry, often still with the old CEO in the early days. Uber was positioned as an antagonist to the backward taxi industry, which wasn't helpful. In the last five or six years, we've focused more on winning the industry as a business partner."
Uber is now active in more than 10,000 cities and 70 countries, and in Germany, it's now focusing on a cooperation with the taxi industry, with the app open to all taxi operators. The company is trying to attract drivers and passengers to its platform with additional revenue sources, without long-term contracts or monthly fees. "Taxi drivers get access to a completely different customer group," says Uber Germany CEO Weigler: "Very tech-savvy young people, but also, of course, international guests."
"Uber hasn't won over partners in rural areas yet"
Michael Oppermann, CEO of the German Taxi and Mietwagen Association, is skeptical: "Uber has very boldly said: Now the app is available throughout Germany. But Uber hasn't won over partners in rural areas yet. That means it's another announcement where the actions still need to follow, and we're very curious to see what happens. There will be individual companies that enter into a cooperation, but a coverage like the taxi industry offers, Uber is still miles away from that."
Christoph Weigler has been at the helm of Uber Germany for nine years. In the podcast "Startup - Now Tell The Truth," he reveals where the journey is headed and how he explains to his California colleagues that many things in distant Germany run differently than in the USA.
He also explains why he thinks we'll all soon be driving around in robotaxis and how the "mafia-like structures" in Berlin came about: In Berlin, it was found that every fourth driver of ride-hailing services was operating without the necessary permit. Around 1,700 illegal cars were taken off the road. "In the end, we became victims of fraudsters just like the city," says Weigler. "They forged a license for passenger transportation, and there was no process for us to coordinate with the city."
However, the Uber Germany CEO can also see a positive side to this: "It shows the potential of transparent and digital processes," says Weigler. Uber ultimately reached an agreement with the city, the taxi center, and all other platforms to share data from all vehicles that sign up and only approve trips once the local authority has checked all documents and registered the car.
Christoph Weigler spoke with Janna Linke. You can listen to the conversation in the ntv podcast "Startup - Now Tell The Truth"*.
"Despite the progress, the Commission needs to provide guidelines for the application of this regulatory framework, as stated in the EU Regulation, through implementing acts."
"Uber's strategy in Germany involves partnering with traditional taxi services, but it still needs to address the challenge of gaining traction in rural areas, as acknowledged by Michael Oppermann, the head of the German Taxi and Mietwagen Association."
