Berlin Senate Halts New Taxi Licenses for One Year Amid Oversupply Concerns
Berlin, February 16 – The Berlin Senate has announced a one-year moratorium on the issuance of new taxi licenses in the capital, a move designed to address a growing oversupply in the taxi market. The decision, confirmed by the Senate Department for Transport, aims to stabilize an industry facing significant economic challenges.
The measure, which will be in effect from December 2024 until the end of January 2026, will prevent the approval of any new taxi licenses. This includes applications for fleet expansion by existing companies. New applicants will be placed on a waiting list during this period, while companies with existing licenses can continue to operate at their current capacity.
Significant Increase in Vehicle Numbers Outpaces Demand
According to the Senate Department, the number of taxis operating in Berlin has seen a substantial increase, rising from 5,400 to 6,600 vehicles between December 2024 and January 2026. This surge in vehicle numbers has occurred despite a consistent decline in demand over several years, a trend that has not significantly reversed even with the introduction of fixed-price options.
This imbalance between supply and demand has made it increasingly difficult for many taxi companies to operate profitably. The Senate fears that this economic pressure could lead some companies to engage in illegal practices, such as underpaying drivers or resorting to undeclared work, in an effort to remain solvent. Such practices, the Senate argues, create unfair competition and jeopardize the stability of the entire industry.
“Demand has been declining for years and has not increased significantly since the introduction of the fixed-price option,” stated the Senate Department for Transport. “In contrast, however, the number of taxis on the roads has risen sharply.”
Industry Tensions and Regulatory Challenges
The Berlin taxi industry has been under strain for several years. Industry representatives often attribute these difficulties to the strict price regulations imposed by local authorities on taxi services. In contrast, car rental platforms like Uber and Bolt are not subject to these same tariff obligations, creating a perceived uneven playing field.
In July 2024, the Senate introduced a fixed-price option for Berlin’s taxi industry, allowing passengers to know the exact cost of their journey when booking online. However, this initiative has not yet led to the anticipated boost in demand, further highlighting the need for more comprehensive measures to support the industry.
Addressing the Root Causes of Instability
The one-year moratorium on new licenses is a direct response to these persistent challenges. By limiting the number of new vehicles entering the market, the Senate hopes to alleviate the oversupply, allowing existing companies to operate under more economically sustainable conditions. This, in turn, is expected to reduce the incentive for illegal practices and promote fair competition within the sector.
The decision underscores the Senate’s commitment to safeguarding the long-term viability of Berlin’s taxi industry and ensuring fair working conditions for drivers. The effectiveness of this measure will be closely monitored, with the aim of fostering a more balanced and stable market for taxi services in the capital.
Source: Press release from the Senate Department for Urban Mobility, Transport, Climate Action and the Environment, dpa/deepl.com
