Government defines 'cab aggregators,' caps fee at 20% of total fare
Published: Nov 28, 2020
By TIOLCORPLAWS News Service
NEW DELHI, NOV 28, 2020: The Ministry of Road Transport and Highways (MoRTH) has defined the meaning of cab aggregators such as Ola and Uber, among others, and come up with guidelines to regulate the sector on Friday.
The government defines an aggregator as digital mediators or marketplaces for passengers to connect with a driver for the intent of transportation.
"The guidelines may be applicable to aggregators onboarding transport vehicles in the area of operation. The vehicles that may be integrated by the aggregator shall include all motor vehicles under the act and e-rickshaw," the MoRTH said.
The license will be valid for five years after which the aggregators will have to get it renewed.
The 'surge price' of aggregators in times of high demand was also capped at 1.5 times the base fare.
"The driver of a vehicle integrated with the aggregator shall receive at least 80% of the fare applicable on each ride and the remaining charges for each ride shall be received by the aggregator,” the ministry said.
While the ride-hailing firms have not commented on the regulations yet, drivers have hailed the decision on social media. The rules also state that drivers will not be permitted to work for more than 12 hours a day and the companies need to provide them insurance.
