The Central Government has allowed taxi aggregators like Ola and Uber to charge up to double the fare during peak hours, addressing a long-standing industry demand. The move aims to improve cab availability and income for drivers.
Good News For Ola-Uber Owners, Centre Green Lights Taxi Aggregators to Charge Double During Peak Hours
The Central Government has finally agreed to a long-standing demand, which is great news for taxi aggregators and ride-hailing app owners across the country. During peak hours, platforms like Ola and Uber can charge up to twice the base price. This change is part of the new Motor Vehicle Aggregator Guidelines 2020, which aim to make more rules and standards for taxi services all over India.
What Does “Double Fare During Peak Hours” Mean?
The Ministry of Road Transport and Highways (MoRTH) has accepted new rules that allow ride-hailing companies to charge up to two times the base fare during peak times. This is true for rides within cities as well as rides between cities that are arranged by apps like Ola and Uber.
People see this step as a way to keep supply and demand in check by making sure that there are more taxis available during rush hour, festivals or weather situations, when demand tends to rise.
Good news for Ola and Uber partners
People who work with ride-hailing apps as drivers or fleet owners were happy about the news. They had been worried for a long time that price caps would make them lose money, especially during busy times when costs go up.
Surge pricing gives drivers an extra reason to work during busy times, which could increase the number of cabs available for customers and partners’ income.
The government’s explanation
MoRTH made it clear that the policy’s goal is to make the environment open and regulated. States have been told to make sure that their own laws are in line with the central policy. This will make sure that platforms follow rules about insurance, passenger safety, and fare limits.
This will also stop people from raising prices without permission or using the black market, since the policy makes it clear when surge pricing can be used.
Fears and opposition
The taxi business is happy about the change, but some commuter groups are worried that it will mean more expensive rides during work hours or on holidays. But experts still think that a controlled surge system is better than the random price changes that happen in many places right now.
What’s Next?
Based on the new policy from the Centre, state governments will now have to send out their own implementation directions. Cities like Delhi, Mumbai, and Bengaluru, where there is always a lot of demand for Ola and Uber rides, are likely to act quickly on the Centre’s plan.
