ITF wants app-based taxis to trade data for light regulation

OECD affiliate says operational numbers will help review impact of their service.

Ola's cab-hailing smartphone app is seen on a mobile phone in New Delhi, India, Tuesday, March 29, 2016. Aiming to wrest control of Indias booming taxi market, two cab-hailing smartphone apps _ Uber and Ola _ are promising hundreds of millions in new investment while also facing off with one another in court. (AP Photo/Saurabh Das)

The new generation of app-based taxi operators can persuade governments to treat them with light regulation, if they come forward to share their operational data with regulators who can then review the impact of their service, says the International Transport Forum.

The ITF, a think tank affiliated to the Organisation for Economic Cooperation and Development (OECD) with 57 member countries, including India, is holding its 2016 summit here.

As commercial transport apps — services such as Uber and Ola in India and others elsewhere — rise in popularity but encounter hostility from traditional players who must comply with permit rules and licences, the ITF took up the question of regulation and came out with a set of recommendations for “app-based ride and taxi services”, which was released on Wednesday.

The guiding principle, the report says, should be the positive results experienced by passengers. App-based operators have changed the game by raising efficiency of taxis being deployed, encouraging flexible employment and allowing the customer to choose a particular service or driver.

However, the ITF recommendations are clear that in order to help reduce the burden of regulation, the operators should be willing to share their data — by providing access to regulators, allowing reception of data or facilitating verified third-party data reporting.

“Although the report does not address the different conditions in various countries, it should inspire governments,” said Philippe Crist, an analyst at ITF.

Sao Paulo example

An example of the proposed regulation cited by the ITF is Sao Paulo, Brazil where a proposed municipal rule, drawn up after a public consultation, will require app-based taxi operators to pay for use of public infrastructure based on actual vehicle travel. But incentives are also built in if they collaborate with public transport in off-peak periods and to help poorly served areas.

ITF secretary-general Jose Viegas said the objective of the regulatory framework study was to stay ahead of the curve, as transport services were rapidly changing and governments could use such insights for policymaking.