NEW DELHI : App taxi operators, including Uber and Ola, are required to adhere to new fare limits and minimum prices, impose cancellation fees and ensure driver well-being, according to new rules for taxi aggregators issued Friday.
Sudden prices cannot be 50% more than the base rate and the aggregator cannot reduce prices 50% below the base rate, the Union Ministry of Roads said. This limits your space to increase rates during peak hours.
Drivers will receive at least 80% of the fare, while the aggregator can keep the rest, under the new rules. In states where the government has not established taxi rates, the base rate will be ₹25-30. A driver who cancels a trip without a valid reason established by the aggregator must pay a fine of 10% of the fare, not to exceed ₹100. A similar charge will be applied if the passenger cancels the trip, which will be divided between the driver and the aggregator.
Inquiries sent to Ola and Uber remained unanswered as of press time.
Parliament amended the Motor Vehicles Act in 2019 to create ‘aggregators’, a new category of digital intermediaries or marketplaces, that passengers can use to connect with a driver. The rules will apply to all vehicles, including bicycles, cars, auto-rickshaws, buses, and e-rickshaws.
Prior to the 2019 amendment, there were no uniform guidelines for aggregators and the rules differed from state to state, creating occasional regulatory hurdles.
“These guidelines will provide a framework of guidance to the states / UTs to consider for the issuance of licenses, as well as to regulate the business that these aggregators carry out,” the ministry wrote to the principal secretaries of all the states.
Aggregators must guarantee medical and temporary insurance for each driver for at least ₹5 lakh and ₹10 lakh, respectively, with the base year 2020-21 and increased by 5% each year. They must ensure that a driver is offline for 12 hours on any given day. However, there should be a mandatory 10 hour break in case the driver logs in for more than 12 hours on any given day.
States can suspend the aggregator’s license if there is a ‘systemic failure’ to ensure passenger and driver safety, repeated financial inconsistencies in fares, unjustified imposition of sudden prices, and ‘severity of financial scam’, among others. . The data generated by the application must be stored on a home server for a minimum of three months and a maximum of 24 months.
Aggregators must also establish a 24×7 control room to monitor the movement of all vehicles. The app must display a call center phone number and email address at all times.
States can regulate eligibility conditions, vehicle, driver, app and website compliance, fees, driver wellness, and evolving concepts like carpooling and carpooling.
“While the guidelines are positive in terms of formalizing the sector and increasing consumer confidence through improved security regulations, the overall impact of these guidelines on ecosystem growth is negative, as the increase in limits and the fee of the platform will ultimately lead to reduced profits for 500,000 drivers currently on these platforms, and will also lead to higher prices and higher wait times for the 60-80 million consumers who use it for their driving needs. mobility and everyday travel, “said Ujjwal Chaudhry, Associate Partner (Consumer Internet) at Redseer on Friday.
Sharan Poovanna contributed to this story.
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