High permit fees may hit Ola, Uber

While a section of drivers of taxi aggregator firms like Ola and Uber are getting restive over falling revenues after a robust start to the trade in Mumbai a couple of years ago, the biggest headache for the trade might just be round the corner. One of the proposals in the draft of City Taxi Service rules promulgated by the state government explains the payment of fees to convert tourist permit of aggregator cab drivers to a transport permit — ones used by drivers of radio taxis like Meru and Tabcab. The fees for vehicles with an engine capacity of over 1400 cc has been kept at Rs 2.6 lakh and for vehicles with an engine capacity of below 1400cc, has been fixed at Rs 25,000.

According to transport department officials, radio taxi cabs like Tabcab purchased their permits in a state transport department auction way back in 2013 at a cost of Rs 2.64 lakh per permit. However, aggregator firms are running their vehicles on All-India Tourist Permits (AITP) which cost much lower fees of around Rs 2,000. The fees could create problems for drivers, officials agreed, because as per the draft rules, it is the vehicle owner who will have to pay the fees and not the aggregator firms. The move will hit those drivers who ply bigger cars like Innova's and Tata Arias into the trade, said officials. In reply to a query, Praveen Gedam, transport commissioner said that the draft rules have not yet been approved by the government. "The fees of Rs 25,000 and Rs 2.6 lakh are part of the draft rules. We have not yet made a final decision," Gedam told DNA.

However, a section of officials agreed, that due to pressure from radio taxi firms which have taken a hit due to services like Ola and Uber, and also the fact that it can bring in much-needed revenue running into several hundred crores, there is a high chance that the fees would be part of the final taxi rules.