New Regulations for Ola, Uber, and E-Rickshaws in Maharashtra, Focusing on Surge Pricing and Security

The Maharashtra government has unveiled draft regulations for app-based aggregators like Ola, Uber, and e-rickshaws. These rules aim to control surge pricing and fare caps, mandate driver working hours and training, ensure passenger safety, include accessibility features for people with disabilities, and introduce new licenses and fees.
Mandatory Driver Training (File Photo: ITG)

Source: aajtak

On Friday, the Maharashtra government released draft regulations for app-based aggregators, aimed at controlling public transport operators under these regulations. Provisions include setting limits on surge pricing, capping fares, and restricting drivers' working hours. Stakeholders have until October 17 to submit objections and suggestions on these draft rules.

The regulations apply to all passenger motor vehicle aggregators like Ola, Uber, and e-rickshaws, incorporating mandatory accessibility features for differently-abled passengers.

These regulations aim to bring more discipline, transparency, and safety to app-based transport services.

New Limits on Surge Pricing and Fare Reductions

According to the draft rules, surge pricing cannot exceed 1.5 times the base fare set by the Regional Transport Authority (RTA). Additionally, lowering fares below 25% of the base rate during low demand is prohibited. Currently, due to the lack of regulations, the state government has no control over fare increases. Furthermore, the convenience fee charged to passengers should not exceed 5% of the base fare, and overall deductions should not surpass 10%.

Limitations and Training for Drivers

The draft rules stipulate that drivers can log into the app for a maximum of 12 hours a day, followed by a mandatory 10-hour rest period. Before onboarding, drivers must complete a 30-hour orientation and motivation training program. Drivers with an average rating of less than two out of five stars must undergo corrective training and will remain suspended from the platform until they do so.

Focus on Passenger Safety and Convenience

Passengers often face ride cancellations when drivers decline journeys upon knowing the destination. According to these rules, drivers should not see the passenger's destination before accepting the ride. Aggregator apps must enable live location sharing and trip status tracking. Additionally, apps must provide travel insurance coverage up to ₹500,000.

New Licenses, Fees, and Security Deposits

When obtaining a new license from the State Transport Authority (STA) or RTA, aggregators must pay fees of ₹1 million and ₹200,000, respectively. For renewals, they must pay ₹25,000 or ₹5,000. A security deposit based on the number of vehicles must also be maintained: ₹1 million for up to 1,000 vehicles, ₹2.5 million for up to 10,000 vehicles, and ₹5 million for more than 10,000 vehicles.

Age of Vehicles and Language...

Only vehicles less than nine years old for autos and cabs and less than eight years old for buses will be eligible for operation. Aggregator apps must be available in Marathi, Hindi, and English languages. Transport Minister Pratap Sarnaik stated that these rules would help prevent the exploitation of drivers and improve service quality.

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