Residents of Karnataka would not have to undergo the price surge during rush hours as the government has brought in a new guideline for these aggregators. Reports suggest that after Karnataka, even the state of Maharashtra is keen to follow and bring in this rule.
Known as the On-demand transportation technology aggregators rule (2016), it states that cab aggregators cannot charge people over and above the stipulated fare. Coming into effect from the 2nd of April, it will tend to impact the business of the companies such as Uber and Ola. The rule also abolishes with base fares as well as ride-time fares.
With the new rule coming into effect, Rs. 19.50 and Rs. 14.50 per km will the maximum fare for air-conditioned cabs and non air-conditioned cabs respectively. The aggregators will be allowed to lower the charges to a minimum between Rs. 6 and Rs. 13 in order to compete with their rivals. Also, the aggregators would not be allowed to charge for dead mile while service tax will be charged as applicable.
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The aggregators have also been advised to check the credentials of the drivers before employing them with the help of the police. Another advice was not to employ people who have had any sort of convictions in the past seven years for drunk driving or driving under the influence of drugs. The cabs should come equipped with GPS/GPRS system along with a panic button that can be used to alert the local police.
Source: ET Auto