The city taxi fare indexed by WPI for the present year has been fixed as the base fare. Currently, there is no cap on surge pricing and cabs operating below the aggregator model charge twice, thrice and from time to time (through festivities) even 4 instances the base fare.
The ministry of road transport and highways (MoRTH) on Friday issued recommendations aimed at bringing cab aggregators like Ola and Uber below a regulatory framework, which amongst other issues, has fixed a ceiling for surge pricing. The recommendations stipulate that surge pricing can not be a lot more than 1.5 instances the base fare. The aggregators are also totally free to charge 50% decrease than the base fare. The city taxi fare indexed by WPI for the present year has been fixed as the base fare. Currently, there’s no cap on surge pricing and cabs operating below the aggregator model charge twice, thrice and from time to time (through festivities) even 4 instances the base fare.
Further, driver of a automobile integrated with the aggregator shall acquire at least 80% of the fare applicable on every ride and the remaining charges for every ride shall be received by the aggregator. “The state government may by way of a notification direct 2% over and above the fare towards the state exchequer for amenities and programmes related for aggregator operated vehicles, which have been helpful in reducing traffic congestion to a great extent and subsequently reducing pollution,” the recommendations stated.
Since Motor Vehicles Act falls in the concurrent list, which suggests each Centre and the states can frame guidelines below it, the MoRTH has written to all the state governments, drawing interest to the provision of Section 36 of the Motor Vehicles (Amendment) Act, 2019 which delivers for the amendment of section 93 of the Motor Vehicles Act, 1988 relating to the Motor Vehicle Aggregator Guidelines. The amended provision delivers that “while issuing the licence to an aggregator the state government may follow such guidelines as may be issued by the Central Government”.
Under the recommendations, cancellation of bookings by each drivers and riders will attract a penalty of 10% of the total fare not exceeding Rs one hundred. The new guidelines also enable female passengers availing ride pooling solutions the selection to pool only with other female passengers. According to the recommendations, the aggregators have to make certain that the information generated on their apps is stored on a server in India and that such stored information shall be for a minimum of 3 months and maximum of 24 months from the date on which such information is generated. Aggregators, nonetheless, can not disclose any buyer information with no their written consent.
Among other important provisions, the recommendations empower authorities to suspend an aggregator’s licence if there exists a “systemic failure by the aggregator to ensure safety of the rider and/or the driver, repetitive instances of financial inconsistencies with regard to the fares charged to riders, unjustified imposition of surge pricing, non-compliance with the proportionate division of fares between the drivers and the aggregator, unsubstantiated imposition of charges on the drivers”. The recommendations will also make certain compliance with regard to cars and drivers, aggregator app and internet site and evolving ideas like pooling and ride-sharing in private automobiles, the ministry mentioned in a release.
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