Now Cab Companies Like Ola, Uber Will Not Be Able To Charge Fares Of Their Own

Shikha Chaurasia

Pune, November 30, 2020: The government has given a big blow to companies like cab aggregators Ola and Uber. The road transport ministry has released a new guideline according to which it will not be able to charge more than 50 percent of its base fair during peak hours. 

Since the lockdown and other restrictions were removed in the country, there were frequent complaints that cab aggregators were charging extravagant fares according to their liking. Especially during the peak hours, the fare was increased by several times. Because of this, the government has taken this decision and created new rules. 

The Ministry of Road Transport and Highways released the Motor Vehicle Aggregator Guidelines 2020. According to these guidelines:

· Aggregators will be required to get a license from the state government. 

· The states will be able to fix fares. 

· The definition of aggregator will now be included. For this, the Motor Vehicle Act, 1988 has been amended with the Motor Vehicle Act, 2019.

Now these rules have to be followed

o The aggregator will be allowed to charge 50% less than the base fare. 

o The cancellation fee has been reduced to 10% of the total fare, which will not exceed Rs 100 for both, the rider and the driver. 

o The driver will now get to keep 80% of the fare on the drive and the company will be able to keep 20% of the fare with itself.

o For the safety of the customers and the interests of the driver, the government has made the regulation of aggregator.

o According to the guidelines, cab aggregators will have to offer a separate option for women while carpooling in their app, through which they can also choose to carpool with only female passengers.

o Also, in cities where it has not been assessed, Rs 25 to 30 will be considered as minimum base fair. There is no such base fair for other vehicles like bus and two-wheeler. This base fare will be applicable for 3 km.