What did the Central Government Committee recommend about Taxi Aggregators like Ola & Uber?
Sai Krishna Muthyanolla
December 26, 2016
The committee constituted by the Ministry of the Road Transport & Highways (MoRTH) to propose guidelines for taxi aggregators like Ola & Uber has submitted its report. The committee recommended that State Transport departments fix and minimum and maximum fare for taxis in the economy segment.
After Taxi-Aggregators like Ola & Uber ran into regulatory hurdles in multiple states, the Ministry of the Road Transport & Highways (MoRTH), Government of India constituted a committee to propose a Taxi policy guideline to promote urban mobility. The constitution of the committee also followed the directions of Delhi High Court. The committee has now submitted its report and the report has been accepted by MoRTH. The committee in its report proposed guidelines for various areas in the taxi segment. The report also proposed guidelines for aggregators like Ola & Uber.
The State Transport departments may allow Bike sharing
The committee recommended allowing two-wheeler taxi permits like in the four-wheeler segment. It recommended that existing private bikes may be allowed to register themselves as taxis. It has to be noted that Uber flagged off its ‘UberMoto’ services recently in Hyderabad.
Aggregators can aggregate all types of Vehicles
The recommendations state that the aggregators can aggregate all types of vehicles provided the vehicles comply with all the existing regulations. Aggregators can provide services for both intra-city and inter-city services. The committee also recommended that three-wheeler auto-rickshaws can also be brought under aggregation. It is also recommended that the state transport departments allow a service charge to be charged by the aggregators.
Aggregators have to comply with the following rules
The committee recommended that all taxi-aggregators obtain an appropriate license from the State Transport Department under Section 93 of the Motor Vehicles Act, 1988 before they start operations. All the aggregators should comply with the following rules.
Aggregator Software & Fare Calculation Algorithms should be validated by MEITY
The committee also recommended that the algorithms used for distance and fare calculation etc. should be checked and validated for accuracy. Quality of these software applications should be audited by from Standardisation Testing and Quality Certification(STQC) or any other agency authorised by Ministry of Electronic and Information Technology (MEITY), on a one-time basis.
STQC or other nominated agency of MEITY should validate the attributes used by cab aggregators to calculate the shortest path for any inaccuracy and this validation should be maintained. This is to ensure that the customers are not overcharged.
The committee also recommended that in the interest of security of personal data, the Aggregators should provide options to the consumers whether they want to share the data on their mobiles with the aggregators or not. Express consent of the consumers should be obtained to share the personal data and it should be ensured that all the data is protected by a firewall. However, if any such data is requisitioned by any enforcement agency then the aggregators would be bound to provide the same.
Maximum Tariff for Aggregator based taxis
The committee recommended that the taxis under aggregators should be categorized into the following two segments
The committee recommended that the tariffs of deluxe taxi segment should not be controlled and market dynamics should be allowed to determine the tariffs. But the State Transport Departments may regulate the fares of the taxis in the economy segment. The following rules may be used for fixing the tariff in the economy segment.
Alternatively, the committee also recommended that aggregators may be asked to provide the minimum fare that would be charged from the customers and the State Transport Department may fix a multiplier to cap the maximum fare.  While fixing the tariffs, the states may engage the services of transport economists and related experts who would be able to provide a scientific approach to determination of tariffs and permit charges.
NITI Aayog’s divergent views
It has to be noted that the Niti Aayog had expressed divergent views to the committee especially on the tariff front. The views of the Niti Aayog as expressed to the committee are
Niti Aayog felt that aggregators should be responsible for undertaking due diligence of the vehicles provided through their portal which can include
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