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Surge Price to be Allowed by Taxi Aggregators like Uber, Ola

ola cab

The committee constituted by the Ministry of Road Transport and Highways to review issues relating to taxi permits and propose taxi policy guidelines has recommended that  city taxies should  be allowed to run on App Based platforms and be allowed surge prices depending on demand during the peak hours.

The policy recommendations say bigger aggregators do not undercut the traditional cabs.  The committee comprised the representatives from MoRT&H, Transport Commissioners from four States and representatives from Central Pollution Control Board, Delhi Police, Ministry of Women and Child Development, NITI Aayog and Ministry of Electronics and Information Technology.

The major focus of the policy is to ensure safe, secure and affordable ride to the common public so as to help in reducing congestion as well as pollution in the cities.  The policy also recommends that the app used by aggregators is validated for its integrity by an agency authorized by Ministry of  Electronics and Information Technology.

It is expected that the policy would help in a healthy growth of the taxi industry.  The policy is recommendatory in nature and would help to provide a particular framework to help the States in framing detailed regulations. The policy guidelines are available on the website of the Ministry – www.morth.nic.in

However, Congress-ruled Karnataka has banned surge in taxi fares and it remains to be seen how the Centre’s policy affects them.

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