Govt plans to cap Ola, Uber commissions at 10% of total fare

The Centre plans to cap the commission earned by taxi hailing companies such as Ola and Uber at 10% of the total fare, reports The Economic Times. Currently, ride sharing companies earn 20% of the total fare per ride.

This is the first time the government will regulate the commission earned by such companies.

State governments will be permitted to charge an additional levy on taxi aggregators’ earnings, the report stated.

The government has also recommended capping surge pricing at a maximum of double the base fare, the report added. The base fare can be fixed by the state government or suggested by the aggregator and can be reviewed every quarter.

The Centre is planning on releasing draft guidelines on taxi aggregators next week for public feedback, the article quotes a government official as saying.

The guidelines also include a clause stating that not more than 10 percent of rides taken by a driver daily can be subject to surge pricing, the report said.

The proposed norms also recommend a penalty on cancellations. The will be capped at 10-50 percent of the total fare, not exceeding Rs 100, for both drivers and customers.

The draft guidelines also include norms on passenger safety and licensing of ride sharing companies.

The rules for taxi aggregators will be notified under the Motor Vehicle Act, 2019, which came into effect from September 1.

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