The Association of Radio Taxis, comprising companies like Meru Cabs, Easy Cabs and Tabcabs, has submitted its recommendations to the special committee constituted by the Delhi High Court.
The association has suggested the creation of a marketplace model, where pricing is decided at an industry level rather than being determined by two or three aggregators. It has also suggested that the new regulation must restrict predatory pricing. For example, the minimum fare charged should not be lower than the direct or indirect cost. Moreover, none of the aggregator should be allowed to sell below the cost of daily operations.
It has further suggested changes to the categorisation of taxis considering the current status of the taxi industry. For example, the association has recommended that cars with engine capacity of up to 1,099 cc should be brought under the economy range, where there is a need to control both maximum and minimum fares. However, in the case of luxury cars with engine capacity ranging above 1,500 cc, the maximum fare should not be controlled.