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Fare deal for Chandigarh residents: App cabs can’t take you for a ride now
Chandigarh administration issues directions to immediately implement Motor Vehicle Aggregators Guidelines 2020, which will regulate fare calculation, surge pricing, ride cancellation charges
Cab riders can expect a visible dip in their commute expenses with the UT administration issuing directions to implement the Motor Vehicle Aggregators Guidelines 2020, which seeks to regulate fare calculation, surge pricing, ride cancellation charges etc.
As per the guidelines, issued by the Union ministry of road transport and highways, the fare indexed with Wholesale Price Index (WPI), which is ₹18 for the current year, will be the base fare for a minimum of 3km. In case of inter-city rides to cities where the guidelines have not been put in place yet, the base fare shall be ₹25 to 30.
Though the new guidelines will not bring down the base price, it will regulate the surge pricing, ride calculation and other charges, which may significantly bring down the total fare.
At present cab riders charge upto twice the base price during surge pricing in peak hours, but the new guidelines limits surge pricing to 1.5 times the base fare.
The cancellation charges for both the driver and the rider have been capped at 10% of the total fare. Currently, cab aggregators charge arbitrarily, sometimes as high as ₹50, for a cancellation.
Economists say linking the WPI with base price will prove beneficial to both riders and drivers. “Consumers will be saved from a sudden increase in taxi fares as it is revised only once, i.e when WPI figures are declared. Also during inflation period, the WPI will ensure that real income of operators won’t fall. An upward revision of prices shall hedge against fall in real income of operators even during inflation period. So it’s beneficial for both,” he said.
Aggregators need to seek permit from states
As per the state transport authority (STA) records, around 1,700 Uber cabs ply in the city, out of which 459 are registered in Chandigarh and 1,241 are registered in Punjab and Haryana. Besides, there are 2,317 Ola cabs, out of which only 215 are registered in Chandigarh and the reaming 2,102 are registered in Punjab and Haryana.
STA secretary Amit Kumar said the guidelines make it mandatory for the cab aggregator to acquire prerequisite permit to operate. Valid for a period of five years, the licence can be suspended if there is a ‘systemic failure’ in ensuring the safety of the rider and the driver or violation of contractual obligations.
