Your cab charges to fall? Government may cap commissions earned by Ola, Uber, says report
The central government has proposed capping the commissions earned by cab aggregators like Uber and Ola. It also seeks to regulate surge prices. The guidelines are issued under the Motor Vehicles Act, 2019
The central government is planning to cap the commission earned by Cab aggregators such as Uber and Ola to 10% of the total fare, from the current level of about 20%, says a report.
According to the report on the Economic Times, the central government has also proposed capping the surge prices to a maximum of twice the base fare, which the state government would fix and revise in every three months.
The report, which is based on a set of guidelines that the central government shared with states, also proposes to allow the state government to charge on the aggregator company's incomes.
Once finalised, the proposed changes will be notified under the Motor Vehicles Act, 2019, before the end of the year.
The Act, which came into effect on September 1, has defined aggregators as digital intermediaries or marketplaces, which can be used by passengers to connect with a driver for transportation. These aggregators, who get licenses from the state, must comply with the Information Technology Act, 2000.
Any violation of licensing conditions could lead to a penalty between ₹25,000 and ₹1 lakh.
The government is also trying put in place regulations to ensure women and passengers safety, clear ownership of cabs for accidents and other liabilities under the guidelines.
In India, transportation comes under the state governments. So, it ultimately depends on the state whether it wants to implement the guidelines suggested by the central government.
San Francisco-based ride-hailing giant Uber and the home-grown Ola, owned by ANI Technologies Pvt. Ltd is the two major cab aggregators in India.