Govt may soon regulate commission, surge pricing by taxi aggregators

If you use a cab aggregator service like Ola or Uber, there's good news for you. The Narendra Modi-led BJP government may soon bring out new rules to regulate the taxi aggregators.

According to sources, the new proposal caps the commission earned by the aggregators at 10% of the total fare of the ride that a commuter takes. Currently, aggregators charge up to 20% on fares from passengers.

Additionally, surge pricing, which leads to arbitrary doubling and even charging more than three times the fare, will be curbed. The surge price cannot be more than double the base fare at max, sources added.

However, either the state government or the cab aggregators can decide the base fare, which can be revised every three months.

If the government rules come into force, traveling in cabs will be a bit cheaper for commuters as the commission will be reduced.

Strict measures have also been proposed against the cancellation or delay of cabs by drivers. Under the proposal, if the cab driver cancels the ride, a penalty of up to 10-50% of the fare, which can be a maximum of Rs 100, can be imposed.

The same rule will also apply to the riders as well. If they cancel for unjustified reasons after booking the ride, they will have to pay a penalty of up to 10-50% of the fare on the rider.

An insurance cover of Rs 5 lakh of the rider is also in the pipeline. Also included is regular biometric or facial verification of cab drivers for security reasons.

This is the first time that the government is planning to regulate issues like the commission of cab aggregators or surge pricing. The draft prepared for rules may be released for public consultation as early as next week.

Although the government wants to promote cab aggregators in the country, due to lack of concrete rules, numerous complaints or disputes related to the service providers surface. In such a situation, the government wants to make cab aggregators accountable through regulations.