Government mulls cap on spike prices, punishment against drivers of cab aggregators.
New Delhi: The Centre is very likely to cap surge prices charged by cab aggregators such as Ola and Uber. This and other such regulations will be a part of a frame being rolled out for taxi aggregators from the authorities. The road transport and highways ministry, together with a bunch of states such as Karnataka, Gujarat, Maharashtra, among others, is working on a comprehensive framework to generate cab rides secure and hassle-free.
There have been two meetings until now. The discussions have been on and the principles should be out by February-March next year,” a senior administration official told Mint.
Other steps aimed at protecting consumer attention comprise alerting drivers for rides that are cancelling. In what might improve girls security and customer experience, the government may mandate cab aggregators to have a helpline that is 24×7. Insurance for drivers as well as riders could form part of the guidelines for ride hailing apps, said the officer.
The government has defined and recognized aggregators as electronic intermediaries or marketplaces which may be used by passengers to associate with a motorist for transportation, under the amended Motor Vehicles Act. Even though a wide framework is expected to improve customer experience, it’s also likely to increase the compliance burden, together with higher regulatory scrutiny to the taxi aggregators.
Before this, the law didn’t recognize web aggregator as a thing separate from a cab operator. The government was prevented in matter involving their drivers taxi aggregators and riders earlier as there was no obvious law regulating the business. App-based taxi operators have seen a substantial growth in the last few decades, with the entry of international players like Uber into India, along with the rise of home-grown company Ola worked by ANI Technologies Pvt Ltd..
As far as safety is concerned, the development comes in the backdrop of the Supreme Court asking the central government to consider bringing a law to regulate taxi aggregators to guarantee women’s safety. The world’s largest ride-hailing company, uber, lost its licence due to safety lapses that were repeated in London.