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Cab fares surge Ola Uber fare capping authorities notification

Picture Supply : PTI

Govt proposes capping surge pricing by cab aggregators at 1.5 instances of base fare

The federal government on Friday proposed to cap surge pricing charged by cab aggregators like Ola and Uber at 1.5 instances of the bottom fare. The event assumes significance within the backdrop of a long-pending demand of residents to cap the pricing of ride-hailing providers.

“The aggregator shall be permitted to cost a fare 50 per cent decrease than the bottom fare and a most surge pricing of 1.5 instances the bottom fare,” stated the Motor Car Aggregators Tips, 2020 issued by the Ministry of Street Transport and Highways.

This can allow and promote asset utilisation which has been the elemental idea of transport aggregation and likewise substantiate the dynamic pricing precept which is pertinent in making certain asset utilisation in accordance with the market forces of demand and provide, the ministry stated.

The driving force of a automobile built-in with the aggregator shall obtain at the very least 80 per cent of the fare relevant on every journey and the remaining costs for every journey shall be acquired by the aggregator.

In states the place the town taxi fare has not been decided by the state authorities, an quantity of Rs 25/30 shall be the bottom fare for the aim of fare regulation, the rules stated.

Comparable fare fixation shall be accomplished by the state authorities of different automobiles built-in by aggregators with the related state, the ministry stated.

Analysis agency RedSeer stated that the rules for cab aggregators which search to cap surge pricing at 1.5X amongst different provisions are anticipated to have combined impression for the sector that may profit from improved security laws however may have “unfavorable” fallouts for drivers’ earnings.

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