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Draft Central Aggregator Guidelines 2019: Regulate commission, cap on surge pricing, and other proposals

Ola uber

The Ministry of Road Transport and Highways has prepared guidelines for cab aggregators like Ola and Uber, which propose to regulate commission charged by the cab aggregators and look to place a blanket cap on surge pricing. Reuters had first reported this development. Called the Central Aggregator Guidelines, 2019, the guidelines mandate aggregators to store data in India, recognise them as intermediaries, and also provide them safe harbour, but demand them to put in place certain safety measures to ensure passengers' safety. MediaNama has accessed a copy of the 23-page document and here's a summary: Aggregators or state governments can decide the base fare: Aggregators can fix the base minimum fare for a minimum of 3 kilometres. This fare can be revised quarterly, but only after the licensing authority has been duly notified of the same. Alternatively, the guidelines propose that state governments can also decide the minimum base fare. Cap on commission charged by aggregators: The guidelines propose to cap commission charged by aggregators to 10% of the fare of each ride. It also says that state governments can also, by way of a notification, keep a portion of the fare. However, that portion will be deducted from the driver’s cut. Read more: Regulating commission and surge pricing charged by Ola, Uber will 'kill the market', say industry sources Regulates surge pricing: The guidelines set surge pricing at a maximum of twice the base fare per kilometre. Also, no more than 10% of daily rides undertaken by a driver…

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