MGP demands 20% cap on cab aggregators’ surge pricing in Mumbai

While welcoming the competition in the taxi-autorickshaw trade, the MGP has, in its letter, demanded that base fare of the aggregators should be determined by regional transport authority (RTA) as it is done for black-and-yellow taxis.

To control surge pricing imposed by app-based taxi aggregators during peak hours, Mumbai Grahak Panchayat (MGP) has demanded 20% cap on their minimum and maximum tariff in a suggestion letter submitted to the state transport department.

Maharashtra City Taxi Rules-2016 will make app-based taxi aggregators like Ola and Uber come under government regulation once it comes into effect(HT File Photo)

The state had demanded suggestions and objections on the proposed draft of Maharashtra City Taxi Rules-2016, which will make app-based taxi aggregators like Ola and Uber come under government regulation once it comes into effect.

While welcoming the competition in the taxi-autorickshaw trade, the MGP has, in its letter, demanded that base fare of the aggregators should be determined by regional transport authority (RTA) as it is done for black-and-yellow taxis. It also suggests reducing the vehicle life span to 7 years from the exiting 20 years, minimum qualification of a driver to be a Class 12 pass, working knowledge of Marathi and dispute redressal within 10 days.

“We welcome the competition in any trade but it should be regulated. Besides there has to be higher and lower cap on the tariff so that both consumer and service provider remain unaffected,” said Shirish Deshpande, MGP Chairman while adding, “The aggregators should take prior approval of RTA before offering any incentives to the drivers and consumers. This is to only maintain transparency in the trade.”

Spurt pricing during peak hours is the common complained made by the commuters using cab aggregators. “We have often faced the problem of volatile tariff while booking app-based taxis. Within minutes the tariff doubles or even goes four times up especially in peak hours. At times, we have seen that drivers purposely avoid arriving so that they get better rate,” said Sunil Rawal, a Sion-based commuter.

When contacted, Praveen Gedam state transport commissioner said, “We have received the letter but final decision will be taken by the state government.”