Cab services like Ola, Uber can`t charge surge pricing more than twice the base fare: Delhi Aggregators Scheme

Delhi government on January 24, issued a draft of Motor Vehicle Aggregators Scheme, 2021, wherein it states that App-based cab aggregators in the national capital will be able to impose surge prices that will not be more than double of base fare during peak demand hours. 

The draft scheme fixes surge pricing by keeping the upper limit of it not more than double of the base fare to be fixed by the government. All aggregators operating more than 50 vehicles in the National Capital Territory (NCT) of Delhi would be required to take license for the same. As per the draft, aggregators will also be required to include electric vehicles in their fleets. The cab aggregators currently exercise surge pricing on the rise of demand from commuters but there was no regulation of it by the Delhi government.

The applicant, seeking issuance of license to operate as an aggregator, will either be a company registered under the Companies Act 1956 or 2013 or a cooperative society registered under the Co-operative Societies Act, 1912 formed by an association of drivers or motor vehicle owners or such other association or a limited liability partnership under the Limited Liability Partnership Act, 2008, states the draft.

The applicant will have a registered office in India and they will comply with all the applicable provisions prescribed under the Motor Vehicles Act and the Information Technology Act, 2000, including intermediary guidelines, and all other laws of India, as and rules as notified by the Delhi government. The aggregators will ensure registration of all onboarded driver-partners and their vehicles currently in use within three months from the date of the notification of the scheme.

The scheme also lays emphasis on passenger safety, stipulating that a round-the-clock functioning control room will be mandatory to have real time location of cabs and swift action in complaints. It says panic buttons will be compulsory and drivers having less than 3.5 rating must be imparted training by the aggregators. The aggregators will also be required to share details of their driver partners with the Transport department of Delhi government.

The Delhi government has set a target to achieve a transition of 10 percent of the new-onboarded two-wheelers and three-wheelers by aggregators to be electric within the first three months from the launch of the scheme, and 50 percent in the first year of the scheme. Under the scheme, the aggregators will also be required to have 5 percent electric vehicles within three months and 25 percent in one year period. 

With inputs form PTI

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