States May End Surge Pricing by Uber,Ola; Introduce Fixed Fares

Taxi aggregators like Uber and Ola operate in a grey area without government checks on them.

The Road Transport Ministry is in the process of introducing an ‘intermediaries’ category under the Motor Vehicles Act to bring taxi aggregators under its ambit. (Photo: Reuters)

The Road Transport Ministry is in the process of introducing an ‘intermediaries’ category under the Motor Vehicles Act to bring taxi aggregators under its ambit, reports Hindustan Times.

This may portend the end of surge pricing, as taxi service providers will have to abide by fares fixed by respective states, in that case.

Taxi aggregators like Uber and Ola have been operating in a grey area since there aren’t any structured government regulations to accommodate them.

Also Read: Surge Pricing Debate: Ola Uber Allez! Fare Turned Unfair!

Intermediaries will cover service providers like Uber and Ola that do not have their own vehicle fleets but function in the online market space by linking driver/owner with customer for a fee.

Ministry Official

These services, extremely popular for their easy availability and swift services, came under sharp attacks for their practice of surge pricing, especially during the odd-even fortnight in April this year.

To make a final decision on the “taxi and other automobile aggregation policy”, transport ministers of eight states will meet on 12-13 June in Dharamsala, Himachal Pradesh.

This development, if it happens, will also bring cab services under the purview of Information Technology Act 2000.