Centre to Cap Ola, Uber Commission at 10% of Total Fare: Report

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The central government is reportedly planning to put a 10 percent cap on the commission earned by cab aggregators, like Ola and Uber, on rides.

According to an Economic Times report, a set of guidelines, that has been drafted by the Road and Transport Ministry, will also allow state governments to levy a charge on the aggregators' earnings.

The commission earned by the likes of Ola and Uber currently stands at 20 percent.

“We are planning to release the draft (aggregator rules) for public feedback sometime next week,” the report quoted a senior ministry official, as saying.

Guidelines on Surge Pricing, Cancellation Policy

Further, the guidelines are expected to cap surge pricing to a maximum of twice the base fire, the report said. Moreover, only 10 percent of a particular driver's rides in a day can be subjected to surge pricing.

As far as cancellation policy is concerned, the guideline suggests a 10-50 percent of the total fare as penalty, not exceeding Rs 100, to be levied on drivers for cancelling a ride and for customers cancelling for no reason.

On the safety front, the government could mandate an insurance cover of Rs 5 lakh for each rider, the guidelines said.

(With inputs from Economic Times)