Study: German taxi industry urged to embrace digital offerings as courts overturn local minimum prices

Digital platforms and the taxi market

Separately, the researchers note a legal shift in the regulatory environment. Courts in Leipzig, Essen and, in the days before publication, also Cologne, have overturned local rules setting minimum prices for taxi rides. The WZB stresses that these decisions concern the specific local implementation of minimum prices rather than the principle itself, meaning municipalities could still seek to reintroduce adjusted versions.

The combination of digital competition and weakened price floors is, according to the study, putting pressure on established taxi firms, especially at high-traffic locations such as train stations and airports. Researchers point to Frankfurt Central Station and airports as places where passengers increasingly compare apps rather than hail cars directly.

Court rulings on minimum prices

The WZB argues that rather than resisting digital platforms, taxi companies should position themselves as regulated, quality-controlled providers within those apps. It cites the model's potential to combine the legal accountability of licensed taxis with the convenience of smartphone booking.

The study also recommends that policymakers clarify which digital services count as taxi services under existing licensing law, and under what conditions platforms may set or influence fares. Without such clarity, the researchers warn, the legal landscape will continue to vary from city to city.

Policy recommendations

Industry response was not detailed in the study, but the WZB invited taxi associations and platform operators to comment on its recommendations. The institute said further empirical work is planned on how app-based booking affects driver incomes and service quality in medium-sized German cities.

In its conclusion, the study frames the moment as a turning point: taxi regulation in Germany was designed for a market of street hails and radio dispatch, and now needs to be rewritten for an era in which most passengers first reach for a phone. The researchers argue that both incumbents and new entrants will benefit from clearer, digitally compatible rules.