According to a set of guidelines accessed by the Economic Times, the Centre may cap the maximum commissions taxi aggregators Ola and Uber can earn per ride to ten per cent of the total fare.
The companies currently charge a commission of 20 per cent.
Citing officials privy to the matter, the report said that state governments could also choose to levy a charge on the aggregator's earnings.
The official said that the draft aggregator rules will be released for public feedback next week and that they will “largely be in line with the guidelines that we shared, with a few small changes.”
These rules will be notified under the Motor Vehicles Act, 2019.
In addition, the government may set a cap on surge pricing to twice the base fare. Surge pricing, a multiplier applied to cab fares when demand is high, is employed by both Ola (which calls it peak pricing) and Uber.
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On the Uber website, the company defends surge pricing as a mechanism to ensure cab availability even when demand is high. “Surge pricing is a relief valve for the ridesharing marketplace. Without it, when demand for rides exceeds the number of available drivers, riders would wait longer (or might not be able to get a ride at all). Drivers would have less incentive to accept requests in busy areas.”
Under the Motor Vehicles (Amendment) Bill, 2019, which was passed in the Rajya Sabha and also given the President’s nod in August, the government has the power to regulate cab aggregators like Ola and Uber, considering them digital intermediaries or marketplaces.
The Karnataka On-demand Transportation Technology Aggregators Rules 2016 have already banned surge pricing in the state. Other states like Maharashtra and Delhi have also considered placing a cap on surge pricing.
