Minimum fare for Uber and Ola: In a bid to safeguard the small taxi aggregators from the successful taxi business names like Ola and Uber, the government may enforce a minimum fare for cabs services operating through their mobile apps.
“We will ask the state governments to set the minimum fare for app based taxis…this will ensure that the operators with deep pockets are not able to offer predatory discounts and the competition is trampled upon”, Road transport and Highway Ministry official said.”
Minimum fare for Uber and Ola will be set to save small taxi businesses
The ministry also mentioned that the cab aggregators will be allowed to charge the surge prices for up to four times during the peak hours and a maximum fare price will also be fixed by the states to check exploitation of the customers.
“We have proposed that there should be maximum three-four times surge on the minimum set by the state government. Aggregators cannot choose their own base fare and charge a four times surge on it as they curently do”, said the official quoted earlier.
He added that the maximum and minimum fare prices set by the state will be in tune with the norms set by the state that will be same for all the cab/taxi operators.
The various aspects that will be covered under the new set of rules will include standard norms for ride-sharing, safety, minimum fare price per km, fuel norms and the method for fare calculation.
Other than this, a new rule will be established that will allow the private vehicles to be used as taxi after complying with all the legalities through eased procedures.
Several small taxi operators registered their complaint with the Competition Commission of India against the big names like Uber and Ola for charging a predatory price that has totally hampered their business.
