A study cited by the Funke media group indicates that taxi fares in major German cities are notably expensive when compared internationally. According to the report, even the most affordable city examined in Germany, Dortmund, charges 17 Euros for a standardized five-kilometer journey. This cost significantly exceeds fares in Madrid (11.35 Euros), Rome (12.18 Euros), Dublin (12.21 Euros), Warsaw (9.08 Euros), and Lisbon (7 Euros).
The study, commissioned by “Wirfahren”-an association representing the car rental industry-was conducted by comparative economist Wolfgang Benedikt Schmal. However, the Federal Association for Taxis and Rental Cars disputes these findings, criticizing the methodology used in the investigation.
The analysis compared tariffs across 15 German major cities with ten European capitals and New York. The basis for the comparison was a standardized five-kilometer ride, including four minutes of waiting time. Among the German cities, Dresden topped the list with a fare of 21.97 Euros, followed closely by Munich (21.80 Euros) and Cologne (21.70 Euros). Berlin came in at 18.35 Euros. The only European city listed that was more expensive than the German cities in the study was Copenhagen, at 25.04 Euros. New York was recorded at 20.57 Euros.
The study also evaluates the prices relative to regional economic strength using the GDP Price Quotient. In this metric, Dublin scored 8.781 and New York scored 5.590, with Stockholm at 4.569. The German cities generally scored lower, ranging between 3.336 in Munich and 1.579 in Dresden. A higher quotient value indicates a more affordable taxi ride relative to local economic output.
The Federal Association for Taxis and Rental Cars countered this report, stating that the pricing structure in Germany is designed to ensure that drivers can be employed under social security regulations. Association director Michael Oppermann told the Funke media group that despite high labor and overhead costs, Germany is positioned in the middle tier internationally.
Oppermann further criticized the study for completely neglecting the operating costs of taxi companies. He noted that roughly two-thirds of the costs are associated with personnel, in addition to vehicles and fuel. He argued that a serious economic study of taxi fares would be impossible without examining the cost structure of the businesses.
While the association does not fundamentally reject price liberalization, it suggested that moderate corridor options should be considered. Furthermore, it is crucial, he argued, to ensure widespread acceptance of payment cards and prevent ride-sharing platforms from systematically undercutting regulated taxi prices through offers outside the official tariff. To this end, Oppermann called for minimum transport rates for car rentals.
The association also criticized the selection of comparison cities, arguing that the study did not disclose any selection criteria, sampling frame, or full survey methodology. It pointed out that cities such as Sofia, Prague, Tallinn, or Zagreb were excluded, yet according to the association’s own EU comparisons, these cities sometimes have significantly higher taxi costs than German cities.
Conversely, “Wirfahren” holds that the state-mandated tariff control is precisely what maintains the high price levels. The study, the association argued, suggests that greater price competition could lead to lower prices that are more aligned with regional purchasing power. Thomas Mohnke, co-chair of the organization, commented to the Funke press that “to get this price level down, we need flexibility,” asserting that companies should have the ability to adjust their prices more effectively based on supply and demand.
