If the State government has its way, all cabs in Bengaluru, including the ones with cab aggregators, will soon have to fix digital meters and operate within a maximum fare limit. They will no longer be able to dictate fares via surge pricing.
The Transport Department will publish a set of rules to regulate private taxi aggregators. The notification has been cleared by the Law Department and is expected to be released next week.
State Transport Commissioner Rame Gowda said, “We will be setting fare limits for aggregators. The rules also state that digital meters will have to be installed in all cabs. While fares less than the set fare can be considered, the total fare cannot cross the upper limit set by the department.”
The Transport Department’s move to regulate taxi fares and introduce digital meters instead of GPS-enabled phones will bring order to an arbitrary pricing system.
Currently, the maximum fare for air-conditioned taxis is Rs. 19.50 per km after a minimum charge of Rs. 80 for four km. While aggregators charge anywhere between Rs. 7 and Rs. 10 per km, commuter end up paying more — as much as four times higher during peak hours — because of ‘surge pricing’.
A fixed fare will mean easier commuting, according to users, as they will know exactly what fare they will be paying at all times of the day. “Sometimes, the surge pricing goes up by around four times of the fare. This is just too much to pay to travel in a cab. Also, during surge pricing, finding a cab is not easy in spite of what the companies say,” said Nachiket Rao, a resident of Frazer town.
Will commuters benefit? Not all the time. If the notification is enforced, taxi aggregators may choose to charge the full fare instead of the current discounted rates during non-peak hours.
As of now, aggregators use cabs with tourist taxi or luxury cab permits, which allows them to use the ‘surge pricing’ model. Under the new rules, aggregators will have to register under Section 93 of the Indian Motor Vehicles Act. They will have to pay a licence fee and security deposit to the government.
The rules are based on a set of guidelines issued by the Union Ministry last year, which empowered State governments to form their own rules governing aggregators.
More power to officials The State Transport Department will have much-needed powers to catch and fine cab operators who charge ‘surge prices’ based on demand for cabs. In the past, several warnings have been issued by the department and raids were carried out, but surge pricing continues to be adopted by several aggregators.
One issue being discussed by the government and aggregators is drivers signing up on several platforms simultaneously in order to get more customers.
Highlights Aggregators to register under Section 93 of Motor Vehicle Act
Compulsory verification of drivers
Aggregator has to set up and operate a control room
Pay licence fee and security deposit to the government
Stiff opposition expected After the notification is issued, stakeholders and citizens can file comments and objections within 30 days. The notification is expected to attract stiff opposition from aggregators who have adopted a wait-and-watch policy. In the past as well, they had made several representations to the Transport Department stating that they cannot be asked to register under the Motor Vehicles Act as they are mere enablers.
