State accepts bid to regulate Ola, Uber fares

Ceiling for surge price set at 3 times kaali peeli rates

March 11, 2020 12:07 am | Updated 12:07 am IST - Mumbai

In a GR issued on Tuesday,  Kaali peeli ’ s have been asked to implement a telescopic fare policy.

In a GR issued on Tuesday, Kaali peeli ’ s have been asked to implement a telescopic fare policy.

App-based cab aggregators such as Ola and Uber in the State can charge surge pricing fares up to three times of the base fare of black-and-yellow ( kaali peeli ) taxis, which is ₹14.85 per km, a Government Resolution (GR) on Monday said. The aggregators’ fares could be regulated soon, with the State government accepting most of the recommendations of the Khatua Committee.

In its report, the committee had recommended a ceiling fare for three categories of aggregator cabs: regular, mid-sized and premium, at ₹26, ₹32, and ₹38 per km, respectively. The base fare for the three categories was fixed between ₹14 and ₹16 per km. While accepting the need to regulate the surge, the GR states the new formula to cap the fares.

A.L. Quadros, leader, Mumbai Taximen’s Union, said the State should ideally implement the Maharashtra City Taxi Rules, 2017, which has been stuck in litigation, instead of introducing piecemeal measures like this.

The four-member committee, headed by retired IAS officer B.C. Khatua in 2016, tabled its findings in 2017. In addition to fixing the fares of app-based aggregators, the committee was also asked to suggest fares for kaali peeli taxis and autorickshaws in Mumbai. It had suggested a new telescopic fare for taxis, where the increase in journey length would attract a discount in fares, and a ‘Happy Hour’ scheme, where there would be lower fares during lean periods.

In the GR, the government has agreed to the telescopic fare, but rejected the lean-period suggestion. Mr. Quadros said they had rejected both and that the telescopic fare proposal was not feasible. “What the report doesn’t account for is that taxi drivers who agree to long-distance journeys often have to return empty. Who will pay for the loss borne by the driver? If this is implemented, drivers will have no option but to refuse long journeys,” he said, adding they will take up this issue and demand a fare hike.

“The Khatua Committee recommended a fare hike three years ago. Since then, the price of gas has increased by ₹9.5 per kg. Hence we are demanding that the minimum fare be increased to ₹25,” Mr. Quadros said.

The minimum fare for black-and-yellow taxis is ₹22 for the first 1.5 km, beyond which they charge ₹15 per km. For autorickshaws, the base fare is ₹18 and the per-km rate is ₹12.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.