App-based taxi companies will not be able to increase fare if demand increases, government tightens

  • Hail in the country and Recover App-based taxi companies such as now will not be able to increase the fare as and when demand increases.

    In view of this arbitrary problem of app-based taxi companies, the Modi government has tightened them up.

    Central road for Ministry of Transportation Has issued the Motor Vehicle Aggregator Guidelines, 2020 on Thursday. After this, action can be taken against the companies that increase the rent.

  • Till now this was the situation

  • Explain that currently many app-based taxi companies including Ola and Uber are providing taxi services to the people in the country.

    These taxi companies charge normal fare from passengers in low traffic conditions, but suddenly increase fares at a festival, event or other peak hours.

    In such a situation people have to pay very high fare even for short distances. Complaints have also been made several times about this.

  • Now companies can increase fares by just 1.5 times in peak hours

  • The print According to transportation Under the Motor Vehicle Aggregator Guidelines, 2020 issued by the Ministry, the taxi aggregator will now be able to increase the fares up to 1.5 times the base fare prescribed by the concerned state government for urban taxi in peak hours.

    Apart from this, in the normal time, the aggregator will charge 50 percent less than the base fare. In states where base rent is not fixed, companies will be allowed to increase the fare by 25-30 rupees.

  • App-based taxi service operating without government intervention

  • Let us know that till the year 2019, all the app-based taxi services in the country were operating without any government intervention. Subsequently, the government included them in the Motor Vehicles (Amendment) Act, 2019, but did not issue guidelines.

  • Unable to run an app-based taxi service without a license

    Unable to run an app-based taxi service without a license
  • Under the new guidelines, license will have to be obtained from the concerned state transport department to start an app-based taxi service in the country. Operations without this will be processed.

    In such a situation, the states will also have to follow the guidelines issued for operating these services.

    These rules make many strict rules for the safety of passengers and women employees while traveling in an app-based taxi service.

  • Violation of license norms will attract a fine of one lakh rupees

  • Under the Motor Vehicle Aggregator Guidelines, 2020, a fine of Rs 1 lakh will be imposed on the company concerned for operating a taxi service in violation of the licensing rules.

    For the license, the applicant has to be registered under the Companies Act, 1956 or 2013 or Cooperative Society under the Co-operative Societies Act, 1912 constituted by the Association of Drivers or Motor Vehicle Owners. Apart from this, companies will also have to open a registered office in India.

  • License fees will be five lakh rupees

  • To get an app-based taxi service license, the company will have to pay a fee of five lakh rupees for five years.

    In addition to the company Taxi driver Police verification will also have to be done along with keeping a complete bio-data of. There should be no case against the driver for driving a vehicle in the last three years.

    Apart from this, the company will also have to bear the responsibility of safety of passengers along with the 24-hour GPS service in all vehicles.

  • 10 percent fine for canceling the ride

  • Under the new guidelines, a fine of 10 per cent will be imposed on fares under Rs 100 for canceling a booking without any valid reason after the driver of the aggregator takes the booking.

    Likewise, if the ride cancels the booking without any reason, then it will be fined 10 percent.

    Similarly, 80 percent fare of each ride will go to the driver and 20 percent to the fare aggregator.



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