Business

Transport ministry issues Guidelines to cab operators, surge price cant be more than 1.5 times

In a set of guidelines by the Road Transport Ministry stated that cab aggregator like Ola and Uber will no longer be allowed to charge more than 1.5 times of the base fare as dynamic pricing when the demand is at peak. It should be 50% less than the base fare during the non-peak period in order to regulate the ride-hailing services.

These guidelines will also be applicable to commercial carpooling services these operators will also need license in order to operate. It will be applicable only when the states will notify them.

The Motor Vehicle Act that has been amended has defined vehicle aggregators as a market place for passengers to connect with a driver for transportation purpose or digital intermediary.

In the states where the taxi fares aren’t yet determined the base minimum fare will be ₹25 to ₹30.For vehicles like buses and two wheelers there will not be any such base minimum fare

Transport ministry issues Guidelines to cab operators, surge price cant be more than 1.5 times

As per the requirements, the requirements and provi6for Motor Vehicles Act of 2019 and amended section 93 of the Motor Vehicles act 1998 the Ministry of road Transport and Highway issued the Motor Vehicle Aggregators Guidelines.

In terms of the app, the Aggregators have been asked to make their apps accessible in Hindi and English. They will also make the official language of the relevant state if the official language is not Hindi in that State for its riders. They will also have to make the app accessible in a language that is understandable for the driver as well.

Highlights about the Guidelines

  • The guidelines seek to establish a regulatory framework for Aggregators by the state government to ensure that the Aggregator is accountable for operations that are executed by them.
  • In order to serve a larger public interest in terms of better effective and comfortable commuting facilities and generation of employment.
  • The Guidelines specified by the central government mus be followed by the state government for regulating the Aggregators
  • For permitting businesses operations by the aggregator license issued by the State Government is mandatory
  • In order to ensure compliance with the license requirements the Act also stipulates penalties under Section 93 of the Act

Read Also: DMRC Suspend Metro Services in light of Farmers Protest

About the author

Avatar

Hrithika Prakash Shetty

Add Comment

Click here to post a comment