The government on November 27 came out with a set of guidelines to regulate cab aggregators in the country.
The government on November 27 capped the “surge price” asked by cab aggregators such as Ola and Uber in times of high demand to 1.5 times the base fare. It also restricted the discount offered by them to 50 percent of the base fare to limit fare volatility.
Cab operators follow a dynamic pricing model wherein price of a ride automatically rises when demand outstrips supply within a fixed geographic area.
In states where the taxi fare has not been determined by the local government, Rs 25/30 shall be the base fare for regulation. Similar fixation shall be done by the state government for other vehicles integrated with aggregators. Like cabs, some companies also offer bike rides. The base fare varies from state to state.
These norms have been laid out in the 26-page Motor Vehicle Aggregator Guidelines issued by the government on November 27 that seek to define and regulate cab aggregators in the country.
Also read: Centre defines aggregators through Motor Vehicle Aggregator Guidelines
In what may cheer drivers who have been hit hard by the coronavirus pandemic, the government has mandated they get at least 80 percent of the income earned from a ride, with the remaining going into the kitty of the aggregator.
