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

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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 be permitted to charge an additional levy on taxi aggregators’ earnings.

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

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

The report also said that the guidelines also include a clause stating that not more than 10 percent of rides taken by a driver daily can 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 Rs 100, for both drivers and customers.

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

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

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