Road transport ministry will soon roll out a proposal to put an end to surge pricing by taxi aggregators like Uber and Ola.
Since app-based cab-booking services don’t fall under any law, the ministry is planning to bring them within the ambit of the Motor vehicles Act under a new category ‘intermediaries’.
A ministry official said, “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.”
By doing so, taxi aggregators won’t be able to arbitrarily fix fares.
“They will have to follow the rules framed for them under the MV Act. They will have to abide by fares prescribed by respective states, which can fix an upper cap beyond which the aggregator cannot charge,” another official said.
The final call will be taken on June12-13 in Dharmasala.