Taxi Aggregators Will Have To Follow Fixed Fares: States All Set To Slash Surge Pricing

Posted on 04 June 2016. Tags: ‘Surge, Aggregators, fares, fixed, follow, pricing, Slash, states, taxi

There’s some bad news for cab aggregators like Uber and Ola who may have to soon follow fixed fares. The government is ready to take some stringent steps and is planning to bring them under the sphere of the Motor Vehicle Act.

 

The app based cab booking services have gained rapid popularity among the urban populace due to excellent discounts and easy availability. However, in the absence of any government checks, they also increase their fares during crucial times. This usually happens when demand overtakes supply and has come under severe criticism.

 

The road transport ministry has thus decided to undertake strict action and is working on a proposal to bring these taxi aggregators within the regulatory framework of the MV act. Further, a new category of intermediaries will be created for them. A ministry official has stated that intermediaries will take care of service providers such as Uber and Ola who work in the online market by linking customers and drivers/owners for a fee. These service providers don’t have their own vehicle fleets.

 

This step has been taken in order to make sure that the aggregators will not fix fares as per their own convenience. They will be required to follow rules made for them under the MV Act. Rather, they will need to agree to fares offered by different states. The states in turn will have the ability to fix an upper cap which would be respected by the aggregator. The aggregators will also be able to provide discounts within the prescribed limit.

 

The ministry has also proposed to make city permits mandatory for taxis within the aggregator system. Moreover, the concerned fee for this will be fixed by the Centre.

 

In order to undertake a final decision on taxi aggregators, transport ministers of eight states will take a final call on 12-13 June in Dharamshala, Himachal Pradesh. Once this development takes place, the cab services will come under the sphere of Information Technology Act 2000.

 

Click here to read more…

Daily Bhaskar