Court Rules Rental Cars Must Return to Base After Rides, Affecting Uber-Style Services
Economy / Finance

Court Rules Rental Cars Must Return to Base After Rides, Affecting Uber-Style Services

Rental service providers’ fleet vehicles are required to return immediately to their base of operations after transporting a passenger, a requirement that differs from that of traditional taxi drivers. The Federal Court of Justice (BGH) confirmed this mandatory return obligation on Wednesday.

The underlying case involved a taxi cooperative in Cologne that sued a company providing rides through the Uber X service. The cooperative argued that a vehicle belonging to one of the defendant’s subcontractors had failed to return promptly to the company’s headquarters following a ride, which the cooperative deemed anticompetitive. Both the District Court of Cologne and the Higher Regional Court of Cologne had ruled in favor of the cooperative, and the BGH validated these decisions.

The Karlsruhe court found no reason to review the return requirement on constitutional grounds. The judges stated that submission to the Federal Constitutional Court was unnecessary because the obligation did not constitute a unconstitutional interference with the freedom to pursue a profession. Furthermore, the freedom of establishment stipulated under the EU Treaty was also not affected, as the matter lacked any cross-border relation (Judgment dated June 3, 2026 – I ZR 123/25).