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In major move, govt caps commissions, surge pricing charged by Ola, Uber

Cab aggregators such as Ola and Uber will now be able to pocket only 20% of fares as commission. Drivers will receive the lion's share — 80% —, per guidelines issued by the Road Transport Ministry on Friday. In the Motor Vehicle Aggregator Guidelines, 2020, the Ministry has also capped surge pricing at 1.5 times the base fare. We have reached out to Ola and Uber for comment and will update the story when they respond. The government had last year amended the Motor Vehicles Act, by identifying aggregators like Ola and Uber as “digital intermediaries”, giving it the power to regulate them. These new guidelines are also largely in line with a set of draft guidelines the Ministry had issued in December 2019, albeit with a few exceptions. For instance, the draft had capped commissions at 10%. Commissions capped at 20%, surge pricing limited to 1.5x The guidelines place significant restrictions on the amount of money aggregators can take in the form of commissions, and from surge pricing. Repeated instances of financial inconsistencies with regard to the fare regulations, may also result in a suspension of their license: Aggregator commissions capped at 20%: Drivers will receive at least 80% of the total fare of each ride, with the commission of cab aggregators such as Ola and Uber restricted to a maximum of 20%. State governments, by means of a notification, can direct 2% over and above the fare towards the state exchequer for amenities and programmes related for vehicles…

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