The state government has appointed a four-member committee under former IAS officer B.C Khatua to review the taxi and auto-rickshaw fares fixed by the PMA Hakeem committee in 2012.
Are you used to commuting at relatively lower prices on app-based taxis using discount codes? The good times may soon come to an end.
A state-appointed panel examining fare fixation for taxis and rickshaws may suggest a floor limit on fares offered by these aggregators, which "distorts the playing field" for other stakeholders like black-and-yellow taxis and rickshaws.
The state government has appointed a four-member committee under former IAS officer B.C Khatua to review the taxi and auto-rickshaw fares fixed by the PMA Hakeem committee in 2012.
"The committee may suggest a ceiling on surge pricing by app-based cabs and also a minimum floor limit.
Though heavily discounted fares help operators pitch their brand, this predatory pricing distorts the market for the four other market players, namely, black-and-yellow taxis, auto-rickshaws, radio taxis and cool cabs. It impacts livelihoods and may edge out a few players, helping these online aggregators corner a huge chunk of the market," a source told DNA.
"Hence, a restriction on minimum fares is necessary to protect existing players. It is essential to have a high number of players (taxi and rickshaw drivers) in the market," he said.
A Ministry of Road Transport and Highways committee has suggested range-bound dynamic pricing with minimum and maximum fares.
Maharashtra has around 8.5 lakh licensed taxis and rickshaws. Transport department officials said Mumbai has around 45,000 black-and-yellow taxis while the number of cabs registered with app-based aggregators such as Uber, Ola and Taxi for Sure is 30,000.
The source said that the report, which may be submitted to the state government in a fortnight, was likely to suggest a pricing formula for taxis based on their engine capacity, price and seating.
This is unlike states such as Karnataka where the fares are based on the price of the taxi. For instance, cars below Rs 4 lakh can charge minimum and maximum fares of Rs 12 and 24 per km and this rises to Rs 23 and 45 respectively for luxury cabs above Rs 15 lakh. "Our formula will be more equitable and broad-based," he explained.
While the committee will also examine the pricing of electric taxis, sources said that the commercial use of these vehicles may not be feasible for now due to the high prices of such cars, time taken for charging them and lack of supporting infrastructure.
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