1. Ola, Uber cab sharing in doubt? Delhi government prepares policy on app-based taxis

Ola, Uber cab sharing in doubt? Delhi government prepares policy on app-based taxis

Taking Ola, Uber pool ride is very common in Delhi. In a proposed move that may affect travellers in the national capital, Arvind Kejriwal government may stop pool riding in Delhi

By: | New Delhi | Published: November 22, 2017 8:17 AM
ola, uber, ola pool, uber pool, ola in delhi, uber in delhi, ola coupon, uber coupon, ola sharing, uber sharing, ola app, uber app Taking Ola, Uber pool ride is very common in Delhi. In a proposed move that may affect travellers in the national capital, Arvind Kejriwal government may stop pool riding in Delhi

Taking Ola, Uber pool ride is very common in Delhi. In a proposed move that may affect travellers in the national capital, Arvind Kejriwal government may stop pool riding in Delhi, according to Indian Express report. It has been learnt that pooling or sharing of cabs is illegal as per the Motor Vehicles Act 1998. However, the operator had continued the practice as no specific rules were enforced by the Delhi government. In July this year, Delhi government said it was preparing to implement ‘City Taxi Scheme 2017’. The City Taxi Scheme 2017 is draft rules which were were supposed to regulate taxi services, particularly those being run by cab-aggregators, the report said.

The Delhi government had, in July, said pooling of cabs would be deemed illegal once it implements its ‘City Taxi Scheme 2017’ — the draft rules it was preparing to “regulate taxi services, particularly those being run by cab-aggregators”, an official said.”

Subsequently, the city government had decided to frame a separate policy — ‘Licensing and Regulation of app-based cab aggregators Rules, 2017’ — specifically for taxi services that can be booked through apps. However, in October, the government have considered removing a clause — which prohibited sharing of pool rides — from the draft rules, which it plans to implement by 2018. This would have made pooling of rides legal.

Not only the pool ride but also surge pricing too will become illegal once this rule is implemented. So far, theere is no categorical rules for cab aggregators in the country. All cabs in India have traditionally worked with a “contract carriage permit”. This stipulates that vehicles do not pick up or drop passengers during the journey. Once these rules are implemented, surge pricing too will become illegal, an official said.

On October 11, domestic taxi operator Meru Cabs had said it filed complaints with competition watchdog CCI against taxi aggregators Ola and Uber for allegedly abusing market dominance in four cities. Alleging that the aggregators are disrupting the market by putting in huge sums of foreign investor money, the company said it has filed four different complaints with the CCI. The Competition Commission of India (CCI) had earlier rejected similar allegations against Ola with regard to the Bengaluru market, saying there was no dominance as rival Uber too was a significant market player and denied interfering in taxi services market which is yet to fully evolve.

“We have filed four complaints against Ola and Uber in top four cities of operations. They have disrupted the dynamics of the business by pouring foreign funds in the market and selling services below cost and running into losses,” Meru Cabs CEO Nilesh Sangoi said, according to reports.

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