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Saturday, November 28, 2020

Government guidelines for companies like Ola-Uber, can not charge extra rent

Nishtha Saluja: Cab aggregator companies like Ola and Uber increase fares a lot during peak hours. 
But now the government is preparing to crack down on such companies. The government on Friday imposed a fare hike on aggregator companies like Ola and Uber as demand picks up. Now these companies will not be able to charge more than one and a half times the original rent.

The government's move is also important because people have long been demanding a curb on exorbitant fares from cab service companies. This is the first time the government has issued guidelines to regulate cab aggregators like Ola and Uber in India.

According to the guideline issued by the Ministry of Transport, the cancellation fee can be charged only 10 per cent of the total fare. Which should not be more than Rs 100 for both the rider and the driver. Guidelines for controlling cab aggregators have long been pending, announced by the Ministry as part of the Mutton Vehicle Act, 2019.

According to the guidelines issued by the Ministry of Transport, 'the driver of a vehicle attached to an aggregator will get at least 80 per cent fare on each ride while the aggregator will get only the remaining 20 per cent of the ride'.

The aggregator will be allowed to charge 50 per cent less than the base fare, except for one and a half times the basic fare.

The city fare hired by WPI for the current year will be the base fare for customers taking advantage of the aggregator service. The government has also allowed aggregators towards non-transport vehicle pooling unless the state government bans efforts to reduce traffic and automobile pollution.

The guideline states that a maximum of four ride-sharing intra-city trips per calendar day and a maximum of two ride-sharing intra-city trips per week will be allowed, with the aggregator and driver attached to each vehicle.

The cab aggregator will need to install a control room with 24x7 operation and ensure that all vehicles in the direction of the aggregator maintain constant contact with the control room.

Aggregators have to make sure that the data generated in the app is stored on a server in India. Such stored data should be for a minimum of 3 months and a maximum of 24 months, as directed in the guideline.

This data will be made available to the State Government in accordance with due process of law. The guideline states that no data relating to customers may be disclosed without the written consent of the customer.

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