App cab operators, including Uber and Ola, must adhere to new fare caps and price floors, levy cancellation charges and ensure driver welfare, under new rules for cab aggregators issued on Friday.
Surge prices cannot be 50% more than the base fare, and the aggregator cannot reduce prices 50% below the base fare, the Union road ministry said. This limits their room to raise fares at peak hours.
Drivers will receive at least 80% of the fare, while the aggregator can keep the rest, under the new rules. In states where the government has not set taxi fares, the base fare will be ₹25-30. A driver who cancels a ride without a valid reason set by the aggregator must pay a penalty of 10% of the fare, not exceeding ₹100. A similar charge will be levied if the rider cancels the trip, which will be split between the driver and the aggregator.
Parliament amended the Motor Vehicles Act in 2019 to carve out ‘aggregators’, a new category of digital intermediaries or marketplaces, which passengers can use to connect with a driver. The rules will apply to all vehicles, including bikes, cars, auto-rickshaws, buses and e-rickshaws.
South Africa Today
Read more at VolaNews
