The Indian government is looking to restrict commission rates charged by cab aggregators like Ola and Uber to 10%, Reuters reported. As of now, drivers who register themselves on Ola and Uber's platform have to pay the platform 20% — or sometimes even more — of a trip's fare as commission fee. The draft proposal, called “Central Guidelines for Aggregators”, which contains this condition along with regulating surge pricing and mandating face recognition for drivers' verification, is expected to be formalised by the end of the year, according to the Economic Times. A senior industry source told MediaNama that capping the commission rate to 10% "doesn't make the cut". A second source said that "this is going to kill the market”. “On what basis has this regulation been worked out? The government cannot just bring in such a regulation at its whims and fancy,” the senior official said. “This is just incessant regulation and is not required,” they said. A third source asked if the government had carried out a consultation process which “led it to believe that a 10% cap on commission rates” would be okay. “What about paying salaries to drivers? Are you [the government] really interested in business?” they continued. The consensus in the industry on the draft proposal appears to be that it will eventually not be good for the drivers who use Ola’s and Uber’s platform. How feasible is facial recognition for driver verification? The draft proposal, which was accessed by Reuters, also said that ride hailing services will have…
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Regulating commission and surge pricing charged by Ola, Uber will ‘kill the market’, say industry sources
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