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‘No Arbitrary Fare’: Centre’s New Guidelines To Regulate Cab Aggregators

by GoNews Desk 4 months ago Views 3354

 ‘No Arbitrary Fare’: Centre’s New Guidelines To R
Cab aggregators that provide rental cabs have suffered a major setback from the new motor vehicles aggregator guidelines released by the Central government. The Union Ministry of Roads, Transport and Highways has for the first time issued new guidelines for motor vehicle aggregators, which will make it difficult for companies like Ola and Uber to collect arbitrary fares. 

According to the new guidelines, the right to determine the fare will now be with the state governments and from that, the cab companies will also have to take a licence. The aggregator will not be allowed to charge 50% more than the base fare. The driver will get 80% of the fare while the company will get a 20% share.


Cancellation fees are also a big issue for cab users, so now the cancellation fee has been reduced to 10% of the total fare, which will not exceed Rs 100 for both rider and driver.

By the way, data theft has also become an important issue everywhere. Keeping this in mind, it will be necessary for aggregators to keep

The aggregators will ensure the data is stored in an Indian server for a minimum of three months and a maximum of four months.

The data has to be made accessible according to the law of the Government of India but it will not be shared without the consent of the users. Cab aggregators will have to establish a 24X7 control room and all drivers must be connected to the control room at all times.

According to the guidelines, the state government can also charge 2% or more of the total fare through notification to the exchequer.

Normally, cab aggregator companies like Ola and Uber increase fares several times during peak hours. But now a limit has been fixed to increase fares on the demand of companies. Now, these companies will not be able to charge more than 1.5 times the base fare.

The cap on surge fees and 80% fare reserved for drivers come as a setback for cab aggregators, who have been on a slow road to recovery since the coronavirus pandemic.

During the lockdown months of April and May, the business of cab companies came to a complete halt due to the COVID-19 pandemic. In 2019, Uber claimed 14 million rides a week, while Ola reportedly saw 28 million rides a week.

The Union Ministry of Road Transport and Highways has said that earlier the aggregator's regulation was not available. This rule is framed keeping in mind the safety of customers and the interests of the driver, which will be implemented in all states.

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