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Maharashtra restricts Ola, Uber surge pricing

The base fare of the black and yellow taxis is fixed at Rs 14.85 per km at present.

March 11, 2020 / 01:22 PM IST

The Maharashtra government has set out a formula for the fare fixation of app-based cab service providers like Uber and Ola, under which the aggregators can surge their fare up to three times the base fare of the kaali-peeli (black and yellow) taxis, The Times of India has reported.

The base fare of the black and yellow taxis is fixed at Rs 14.85 per km at present. So, the fare of cab aggregators cannot surge over Rs 44.52/km even on days of very high demand, the report suggested.

The fare fixation formula was stated in a Government Resolution (GR) issued by the state government on March 9. The GR is in line with most of the recommendations of the BC Khatua committee.

The four-member committee was set up under the chairmanship of retired IAS officer BC Khatua in October 2016 by the previous BJP-Shiv Sena government to decide on the minimum and maximum fare structure for companies like Ola and Uber. In September 2017, the committee submitted an exhaustive report to the government.

On March 9, the government informed that a resolution has been issued accepting most of the recommendations submitted by the committee, including putting up a cap on surge pricing of cab aggregators.

However, the state government would not take any coercive steps against Uber and Ola taxi drivers till April 6 when a plea by aggregators against the City Taxi Scheme introduced by the previous government will be heard in the Bombay High Court, added the report.

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Moneycontrol News
first published: Mar 11, 2020 09:52 am
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