The Delhi Government is all set to regulate the app based cab aggregators in the region with a draft policy that has been finalized and is pending the approval of higher authorities. Under the policy, all app based taxis will have to ply by meter based on the fares decided by the government. This means that companies such as Ola and Uber would not be able to hike prices based on the demand, commonly known as surge pricing.
Currently, these cabs run under a digital meter while the fares are calculated on the basis of GPS tracking. After the new policy comes into effect, the app based cab aggregators would not be able to charge fares more than those prescribed by the government although they can charge less if needed.
Another rule under stated under the policy says that only taxis would be allowed to ply and not private cars. These taxis would have to register themselves under the scheme in order to have permission to operate in the region.
The move is said to have been welcomed by the local taxi and auto unions that recently went on strike to protest against the business that was taken away by these app based cab operators. If the new policy makes its way through, app- based aggregators would have to announce their fares which would increase the transparency for commuters.
Source: ET Auto