Govt brings out new rules for tighter scrutiny of ride hailing apps

Govt brings out new rules for tighter scrutiny of ride hailing apps

Surge pricing is a outcome of demand-supply mismatch, when the number customers trying to book rides overshoot the number of vehicles or drivers available.

A maximum of four ride-sharing intra-city trips a day and a maximum of two ride-sharing inter-city trips per week shall be permitted for each vehicle with the driver.

In a statement, the Ministry of Road Transport and Highways said that it has also restricted the discount offered by cab aggregators to just 50 per cent of the base far which will likely limit the fare volatility.

Tightening the noose on ride hailing app-based services including Ola and Uber, the Union government on Friday said that these aggregators would now be brought under the ambit of Centre's framework in order to fix their accountability as a service provider.

The final guidelines, which are to be considered by the state governments when issuing licences to aggregators, say drivers should receive 80 percent of the ride fare with the taxi companies receiving the remaining 20 percent. It also said the cancellation fee of 10% of the total fare, not exceeding Rs 100 would be for both riders and drivers where they cancel the ride without any valid reason.

Aggregators may give pooling offices to riders whose subtleties and KYC are accessible who will go along a similar course yet with differed stoppages starting with one point then onto the next under a virtual agreement through the application.

"Female passengers seeking to avail ride pooling shall also be provided the option to pool only with other female passengers", the guidelines said. Violation of the licensing law norms will impose a penalty of Rs. 1 lakh and might also result in the cancellation of the license.

Ensuring a health insurance for each driver integrated with the Aggregator for an amount not less than Rs 5 lakh with base year 2020-21 and increased by five percent each year.

The aggregator would have to conduct compulsory remedial training programme for drivers whose rating is below 2 percentile from amongst all drivers. They must ensure that a driver is not logged in for 12 hours on a given day. From around 68 million cab rides by customers in January this year, which came to a complete halt during the lockdown, improved to only around 30 million in October on platforms such as Ola and Uber, according to the RedSeer data.

As per the guidelines, the licence issued by a state government is a pre-requisite for permitting business operations by the aggregator. In addition, aggregators will have to establish a control room that facilitates 24×7 operations. In an offer to diminish gridlock and auto contamination, and compelling resource uses, the public authority has likewise permitted aggregators towards non-transport vehicle pooling, except if denied by the State Government.

To get a license, the aggregator needs to be registered under the Companies Act, 1956 or 2013, or a cooperative society under the Cooperative Societies Act, 1912, formed by an association of drivers or motor vehicle owners.

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