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Proposing Higher Tax Rates and Implementing Minimum Tax for Car Hiring Services by the Commission

Potential developments at a glance:

Proposal made to boost car hire tax rates and implement a minimum levy for such services.
Proposal made to boost car hire tax rates and implement a minimum levy for such services.

Proposing Higher Tax Rates and Implementing Minimum Tax for Car Hiring Services by the Commission

In a move aimed at creating fair competition between taxi and ride-hailing services, the city council of Essen is set to decide on the minimum fares for ride-hailing services in its September session. This decision, which was first recommended by the city's traffic committee on 11th September 2025, follows a series of developments in the transportation sector.

From 2026, minimum fares will apply for ride-hailing services. For the first 1-2 kilometers, the new per-kilometer rate will be 2.80 euros, increasing to 2.70 euros for distances between 3-4 kilometers and 2.50 euros for trips over 5 kilometers. These rates are around 7% lower than the base taxi fare of 4.40 euros.

Repeated violations of legal obligations and labor and social standards have been identified among ride-hailing services, leading to the need for regulation. The committee's recommendation for the minimum fare obligation for ride-hailing services was made alongside a decision to adjust Essen taxi fares, with the per-kilometer rates each being increased by 0.10 euros.

Exceptions to the minimum fare for ride-hailing services include medical trips and pre-booked trips made at least an hour in advance. Waiting times and surcharges that apply to taxis are not included in the minimum fare for ride-hailing services.

The city portal Press and Communications Office can provide further information on these developments. They can be contacted at the Rathaus, Porscheplatz, 45121 Essen, Telephone: +49 201 88-0 (Service Center Essen), E-mail: presse@our website, URL: www.our website/presse. Further details can be found in the documents 0730/2025/6 and 1330/2025/6.

It is important to note that since the last report on taxi fares, the minimum wage has increased by 22%. The last adjustment to taxi fares was made in August 2022.

The city council's decision on these recommendations is eagerly awaited, as they have the potential to significantly impact the transportation landscape in Essen.

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