Govt plans to relook policy on cab aggregators

The government is planning to consult stakeholders before finalising a policy to regulate ride-hailing companies such as Ola and Uber.

It may relook some of the guidelines for the cab aggregators proposed last year.

The transport ministry is planning to have wider consultations with stakeholders. It may also induct a few new guidelines, according to ET report quoting a government official aware of the development.

The ministry is also considering setting a timeline in terms of the total hours allowed or rides for surge pricing apart from instituting a robust dispute redressal system with a helpline number.

Earlier, the government was mulling putting a cap on surge pricing to a maximum of twice the base fare. It had also proposed that the states could fix the base fare after consulting with the cab aggregators.

As per the draft proposal, the government wants cab drivers to get 90% of the fare from each ride and the remaining 10% for the ride-hailing firms.

At present, the ride-hailing firms take about 20% commission on every ride. It also mandates a face-recognition system for verification of drivers.

However, industry observers had raised concerns over the draft, questioning if the government consulted stakeholders before working out the regulation.

Entrackr has reached out to Ola and Uber for comment, but they are yet to respond.

Over the years, ride-hailing firms have been operating without robust official norms. The government plans to recognise them as online intermediaries or marketplaces, which can be used by passengers to connect with a driver for transportation.

The proposed guidelines are reported to address the issues of passenger security, types of vehicles allowed and liability responsibility as provided in the new motor vehicles act.

In July last year, the Supreme Court had asked the government to draft a new law to regulate ride-hailing service providers and address safety issues, particularly for women riders.