1. Cab services in Maharashtra: Fix minimum and maximum fares, says association

Cab services in Maharashtra: Fix minimum and maximum fares, says association

The state government is expected to finalise new rules, which will also include fares on November 5.

By: | New Delhi | Published: November 4, 2016 6:25 AM

cabs

The Association of Radio Taxis of India have submitted their suggestions to the Maharashtra government, urging for a ‘one business-one law’ principle for fixing fares for all types of cab service providers — black and yellow, radio taxi and app-based aggregators.

The state government is expected to finalise new rules, which will also include fares on November 5.
The association has urged that the state government should fix minimum and maximum fare.
“A key issue issue plaguing the sector is how two key players — Uber and Ola — are using predatory pricing techniques to capture the market,” the association has said.

It has also pointed out online taxi aggregator Ola’s financials for FY2015 stating that on every R100 earned, it paid R250 to drivers. “This means that when a driver earned R250 from a ride, while R100 was paid by the customer, the remaining R150 was paid by Ola. The losses incurred by Ola was R800 crore for the year ended March 2015,” it said in the letter.

They have said Uber and Ola together are incurring losses of R7,000-8,000 crore per annum. As per the radio taxi association, to prevent predatory pricing, no cab aggregator should be allowed to pay any incentive to drivers more than what is earned from the customer.

Additionally, it has suggested that taxi aggregators should not charge below the prices charged by black and yellow non air-conditioner cabs.

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