Ride-hailing vehicles working for platforms such as Uber must return immediately to their registered base after every trip, Germany’s Federal Court of Justice (BGH) ruled on Wednesday, delivering a blow to app-based mobility services that have long challenged traditional taxi regulations.
The decision (case no. I ZR 123/25) upholds a decades-old obligation that forces drivers to run deadhead miles between fares. Uber called the situation “economic and ecological madness,” estimating that roughly 30 percent of all kilometers its drivers cover are now empty trips. The SafeDriver Group, an Uber supplier, said the rule generates nearly 200,000 kilometers of pointless driving each day in Berlin alone.
A 12-Minute Parking Incident Sparked the Final Appeal
The case began in Cologne in January 2023. A driver for a SafeDriver subsidiary, which supplies cars for
Lower courts sided with the taxi group, and the BGH affirmed those rulings. Presiding Judge Thomas Koch stated that the requirement remains constitutional, citing a 1989 decision by Germany’s Federal Constitutional Court. “No material circumstances have changed since then,” Koch said. He added that EU law does not override the rule because the matter is purely national in scope.
Industry Sides Sharply Divide
The reaction split the mobility industry. The German Taxi and Hire-Car Association welcomed the judgment as “a vital instrument for preserving market order,” and the Cologne taxi sector voiced satisfaction. Freenow, the platform owned by Daimler and BMW, called it a “signal for fair competition” while also urging medium-term reforms to create a more level playing field.
Uber and the SafeDriver Group condemned the decision. SafeDriver is weighing further legal action, including an appeal to the European Court of Justice (EuGH) or a new complaint to Germany’s top constitutional court. Judge Koch pointed to a 2023 EuGH ruling that economic motives alone do not justify certain market restrictions, a detail the company may use to open a cross-border dimension.
Market Snapshot: 50,000 Taxis vs. 45,000 Hire Cars
Germany’s passenger-transport market remains fiercely contested. Roughly 50,000 taxis operate alongside 45,000 hire cars run by 33,000 companies. The entire sector holds 250,000 active driver permits, carries more than 400 million passengers annually, and generates about €5 billion in revenue.
Regional Price Caps Add to Pressure
Besides the nationwide return obligation, several cities have imposed their own price limits on ride-hailing services. In Cologne, hire-car fares cannot dip more than 20 percent below the taxi tariff. Heidelberg’s cap is even tighter at 7.5 percent.
What Comes Next
The SafeDriver Group is not surrendering. It is considering whether to take the dispute to Luxembourg or again to Karlsruhe. The BGH’s own reference to a 2023 EuGH precedent suggests that stricter market rules may face further legal scrutiny if a future case can demonstrate real cross-border effects. For now, the return-to-base rule remains in force, compelling app-based drivers to burn fuel and time between fares unless and until Europe’s highest court weighs in.
