What are the new guidelines issued for companies like Ola and Uber?

Team Udayavani, Nov 28, 2020, 11:21 AM IST

Cab aggregators like Uber and Ola will draw a fee of 20% of the base fare, the transport ministry said in a set of guidelines meant to regulate ride-hailing services in India.

The Ministry of Road Transport and Highways has issued the Motor Vehicle Aggregator Guidelines 2020 as per the requirements and provisions of the Motor Vehicles (Amendment) Act, 2019 and further as per  the amended Section 93 of the Motor Vehicles Act, 1988.

This has been done in an attempt to make aggregators accountable and responsible for their operations while ensuring customer safety and driver welfare.

The guideline also states that Cab aggregators like Ola and Uber should pay at least 80% of the ride fare to drivers.

‘Surge price’ is capped at 1.5 times the base fare while the cancellation fee for both riders and drivers is set at 10% of the total fare, not exceeding ₹100. The base fare will be for at least 3 km.

The new guidelines are expected to solve regular issues faced by riders who have been complaining of higher surge pricing and lack of regulation for cab aggregators.