Karnataka becomes first to curb surge pricing by taxi firms


Bengaluru, Apr 7 (TNN): Cab users can breathe easy. The new guidelines for taxi-hailing aggregators say under no circumstances can they charge more than the maximum prescribed fare.

The much-awaited Karnataka On-demand Transportation Technology aggregators Rules, 2016, came into effect on April 2. The norms cap surge pricing - charging of several times the regular fare during peak hours - and do away with base and ride-time fares. The guidelines were necessitated after aggregators Ola and Uber began operations.

HG Kumar, additional commissioner, State Transport Authority (STA), said: "According to the MV Act, rates are fixed by the government for all aggregators licensed to operate. As per the norms, the maximum per-km fare will be Rs 19.50 for AC cabs and Rs 14.50 for non-AC ones. Taxis will not be allowed to charge more during peak hours. But the operators can certainly lower tariff to gain a competitive edge."

STA is enforcing the new rules under Sub-section 1 of Section 212 of the Motor Vehicles Act, 1988.

However, services offered at the lower end of the spectrum, priced between Rs 6 and Rs 13, can be offered at higher rates provided they don't cross Rs 19.50 and Rs 14.50 respectively.

The guidelines make it clear there can be no dead mileage charges (when the vehicle is empty for a while after dropping the commuter) in the guise of ride-time charges. There is no room for minimum fare, which is Rs 50-Rs 100 in the case of many aggregators. However, passengers will have to shell out service tax.

The norms make the companies more responsible towards passengers. They mandate that the aggregators check drivers' antecedents via police and not employ someone who has been convicted in the past seven years for driving under the influence of drugs/alcohol or under a CrPC section.

GPS/GPRS systems are a must. The rules spell out technical specifications of the devices to be used. Control rooms are a must. A system through which a panic button pressed by the passenger can alert police is mandatory. However, the norms are only applicable to aggregators operating cabs, not autorickshaws and two-wheelers.


Companies have to register

The rules were notified in the gazette on April 2 and came into effect immediately. Aggregators have to register under this law. Only then will they be given a licence to operate the services.

- E V Ramana Reddy, principal secretary, transport department


Who is an aggregator

An aggregator is an individual or company registered under the Companies Act, 2013, or a firm under the Indian Partnership Act, 1932, who shall comply with all applicable rules and regulations prescribed under these two acts and also the Information Technology Act, 2000, including the intermediary guidelines. The applicant will not own or lease any vehicles, employ any driver or represent himself as a taxi service provider unless he holds a licence issued under these rules. The licence under the new law is valid for five years.


What the norms say

* An aggregator must have at least 100 taxis in the fleet to apply for licence

* Vehicles must have contract carriage permits, display boards with driver and vehicle details

* A yellow display board with TAXI written on it is a must

* Driver must have 2 years' experience, know Kannada and any other language, preferably English. He must hold a KYC-compliant bank account

* All records pertaining to drivers, vehicles and passenger trips must be recorded in digital form and shall be open for inspection

* Company must frame/implement zero-tolerance policy on use of drugs/alcohol and host it on website

* Procedures to report complaint about driver driving under influence of drugs/alcohol must be listed on website

* Refresher courses for drivers on gender sensitization, safe driving and etiquettes should be documented for a year

* Driver should receive passenger grievances through feedback register kept in vehicle

* Host fare structure, contact details of control room and grievance redressal officer, vehicle owner and services offered on website

  

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