India finally charted out a fresh set of rules for the transport industry, which means Ola and Uber now have a handbook to refer to when they are in doubt.
That should be a great relief to the app-based taxistartups, who have gone on and off the roads in India due to a lack of clear regulations.
But most importantly for the companies, the new regulations have allowed surge pricingwithin reason.
For the latest ruling, a committee of the Ministry of Road, Transport, and Highways reviewed issues relating to taxipermits and recommended that the aggregators should be allowed surge or “dynamic” pricing within a certain range to match supply and demand.
“Maximum tariff may be allowed up to four times that of minimum tariff from 12 midnight to 5 am in morning,” the committee ruled, adding that a “very high degree of variation in pricing should not be permitted as it may lead to exploitation of consumers in the time of crisis.”
“The State Transport Department may allow two-wheeler taxipermit on the lines similar to those for city taxi. This will offer an economical and convenient last mile connectivity solution to the citizens. It is highly recommended that existing private bikes may be allowed for such transportation in order to facilitate utilization of idle assets,” the panel said.
