New formula may up auto, cab fares

You may soon have to pay an extra ₹1 to ₹3 for your autorickshaw and black-and-yellow taxi rides, while there could be a cap on surge pricing by app-based cabs.

You may soon have to pay an extra ₹1 to ₹3 for your autorickshaw and black-and-yellow taxi rides, while there could be a cap on surge pricing by app-based cabs.

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The Maharashtra government informed the Bombay high court (HC) that a new government resolution (GR) on a tariff-fixation formula has been issued. However, it said no coercive steps will be taken against app-based Ola and Uber drivers until the next hearing on April 6, effectively meaning there will be no change in fares till that date.

On Monday, while hearing a plea by Uber India Ltd, Ola Ltd and six driver-partners, a division bench of justice AA Sayed and justice Anuja Prabhudesai was informed by the state government that a GR, which accepted a majority of the 61 recommendations by two committees to decide the fare structure for autorickhaws, black-and-yellow taxis and app-based cabs, had been issued on March 9.

According to the resolution, there will be a cap on the highest fare an app-based cab can charge under surge pricing.

It will be up to three times the base fare of black-and-yellow taxis for the equivalent distance. The present base fare of black-and-yellow taxis is ₹14.85 per kilometre (km).

Although it was recommended 2.5 times of the conventional cab’s fare, the state government has decided to allow up to three times. There will be no cap on how low the fare can go, although the unions of conventional taxis wanted such a cap to counter competition by app-based cabs.

With the government accepting recommendations of its panels, an actual fare structure for Mumbai and Mumbai Metropolitan Area (MMR) will now be decided and implemented by the State Transport Authority (STA), which is headed by the state transport secretary. A four-member panel, headed by retired IAS officer BC Khatua, was formed by the Maharashtra government to review a report submitted by another panel, headed by retired IAS officer PMA Hakim, which was formed in 2012 to formalise fare revisions for taxis and autorickshaws in the state. The Khatua panel had submitted its report on October 10, 2017.

Among the other recommendations that have been accepted, include mandatory display of LED indicators on top of black-and-yellow taxis (whether occupied or available), telescopic fare structure for conventional taxis (which means lower fare for commuters travelling longer distance), revision of fare for prepaid cabs at airport as well as fare of Cool Cabs (AC taxis, which are not app-based), additional 10% charge for using AC in back- and-yellow taxi, age limit for vehicles used as taxis and uniform for app-based drivers.

The state government has also accepted the age limit for black-and-yellow taxis along with autorickshaws to 15 years. The age-limit for vehicles used for app-based taxi services (tourist taxis) has been set to nine years. Further, the drivers of app-based cabs will have to wear a uniform: Sky-blue shirt with tie and black trousers, along with black shoes, will be mandatory for them, irrespective of the aggregator company.

The government has also accepted recommendation for allowing black-and-yellow taxis to display advertisements as a means to generate revenue for the owners. A welfare and pension scheme for auto-taxi drivers will also be formed.

Mumbaiites travelling for longer distance will have to pay less fare. The government has accepted the recommendation of the Khatua Panel for telescopic fare structure for black-and-yellow taxis operating in the Mumbai Metropolitan Region (MMR). The telescopic fare structure states reduction in per-kilometre price as distance covered is beyond eight kilometres.

The unions of conventional taxis have opposed the decision, “We will oppose the telescopic fare and had earlier also mentioned it to the state government. There is no proper infrastructure for black-and-yellow taxi drivers travelling for longer distances. We will ask taxi drivers to refuse passengers wanting to commute longer distances.” said AL Quadros, leader of Mumbai Taximen’s union.

The Khatua panel had recommended an upper cap for app-based cabs, that was 2.5 times higher than the base fare of black and yellow taxis) along with lower cap limit. However, the Maharashtra government did not approve the recommendation. The Maharashtra government also rejected the Khatua panel recommendation of introduction of ‘Happy hour’ wherein the panel had recommended a 15 percent discount on the basic fare for black and yellow taxis and autorickshaws between 12 pm to 4 pm.

Transport Minister Anil Parab is expected to make a statement on government accepting the recommendations in the state legislature in a day or two, after which the further procedure to implement the decision will start.

Mumbai Grahak Panchayat chairman Shirish Deshpande welcomed the Maharashtra government decision of approving telescopic fare structure. “The approval of telescopic fare for black-and-yellow taxis is welcomed. The actual fare of autorickshaw and taxis will be known later. The introduction of happy hours was an idea that was out of the box. However, the government did not approve of it.” he said.