The government will fix the rates.
AB Wire
App-based cab service providers will soon come under the regulatory framework of the Delhi government. Once the policy of the government for app-based cab services comes into effect, they would not be allowed to use surge pricing strategy where the fares fluctuate according to the demand.
According to a report in Hindustan Times, the Delhi government is preparing a policy to control cab aggregators like Uber and Ola as per the directions of the Delhi High Court.
The government will fix the maximum fare and the cab companies cannot charge above the rate. The regulation will also make it compulsory to install meters on cabs.
“The government will fix the rates and cabs will charge within the limit. If there’s a law for autos and taxis, Ola and Uber cannot be above it,†Delhi transport minister Satyendar Jain was quoted as saying by Hindustan Times.
The bill is being prepared according to the provisions of the amended motor vehicles act which got the union cabinet approval last week. The police will be sent to the lieutenant governor for approval.
The surge-pricing strategy of the cab aggregators was criticized when the Aam Admi Party government of Delhi rolled out the odd-even policy in April this year. The cab service companies had charged premium fares from the passengers during peak hours of the odd-even rule. Finally, the cab services withdrew surge pricing when the state government intervened in the issue.
Union Minister for Road, Transport, and Highways Nitin Gadkari has earlier said that the new motor vehicles act would have the provisions to control cab aggregators. He said that the central government has worked with the state governments to resolve the issues regarding the law.