Ola, Uber Rates To Be Capped at 10% Of Total Fare

Representative Image
Representative Image

The Centre plans to cap the commission earned by taxi-hailing companies such as Uber and Ola at 10% of the total fare, according to a report.

The ride-sharing companies earn 20% of the total fare per ride at present.

This is the first time that the government will regulate the commission earned by the ride-sharing companies.

As per the report, the state governments will bepermitted to charge an additional levy on taxi aggregators' earnings.

The report further stated that the government has alsorecommended capping surge pricing at a maximum of double the base fare. The basefare can be fixed by the state government or suggested by the aggregator andcan be reviewed every quarter.

The Centre is planning on releasing draft guidelineson taxi aggregators next week for public feedback, said a government official.

The report also said that the guidelines also includea clause stating that not more than 10 percent of rides taken by a driver dailycan be subject to surge pricing.

The proposed norms also recommend a penalty on cancellations.The price will be capped at 10-50 percent of the total fare, not exceeding Rs100, for both drivers and customers.

The draft guidelines also include norms on passengersafety and licensing of ride sharing companies.

The rules for taxi aggregators will be notified underthe Motor Vehicle Act, 2019, which came into effect from September 1.

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