Q. It is a common experience that Ola and Uber services charge exorbitant rates during peak hours. Earlier they used to charge relatively lower fares during off-peak hours. However, of late I do not see such fares. Does the government have any control over the fares? Is there no limit to this surge pricing? Like ‘kali peeli’ taxis and autorickshaws, why can’t the government regulate their fares in the passengers’ interest? It is also seen that some times Ola, Uber drivers cancel the bookings, which leads to hardships. This is particularly so if the cab is booked for the airport at early hours or hospital in emergency cases. Where does one complain about Ola and Uber?
—Abhay Datar, Girgaum
As per the Motor Vehicles Act, 1988, the state government is required to regulate the services of taxi aggregators such as Ola, Uber, Meru, etc. The Centre issued model guidelines in 2020 for the states to regulate these services. However, somehow there has been lethargy on the part of the Maharashtra government to come out with regulations to regulate these companies.
Last year the government appointed a six-member expert committee headed by Sudhirkumar Srivastava, ex-transport secretary. The panel submitted its report to the government in January 2024 and it is awaiting clearance from the CM. From press reports it appears that the committee has recommended a cap on surge pricing by cab aggregators. It is understood to have recommended maximum surge price, which should be 1.5 times the base fare. Simultaneously, offpeak hours reduction will be no more than 25% of the base fare to prevent cutthroat competition.
The base fare chargeable to customers availing aggregator services shall be the city taxi fare indexed by Wholesale Price Index for the current year. In states where the taxi fare has not been determined, the base fare will be Rs 25 or Rs 30. Regarding the arbitrary cancellation of trips by drivers, the committee is reported to have recommended a cancellation penalty. The maximum penalty for a cancelled ride has been set at 10% of the fare, with a cap of Rs 100. This amount will be directly credited to the passenger’s account.
To avoid hardships for passengers going to airports, railway stations or hospitals, the committee is understood to have recommended penalty up to fivefold the normal penalty. Such higher penalty is expected to deter irresponsible and arbitrary cancellations by the drivers and avoid last minute difficulties to passengers. On the other hand if the passenger cancels the booking, the cancellation charges will be 5% of the fare. The committee has considered representations from all stakeholders, including the Mumbai Grahak Panchayat (MGP), on behalf of passengers.
It is almost eight months since these recommendations have been made and it is high time the CM finds time to take a call on the report. Meanwhile, if anyone wishes to complain against Ola, Uber, etc, then he or she can do with their respective apps.
Complaints about cancellation by driver, misconduct by driver, etc, can be lodged with RTO offices on their mobile or on email id as given below:
● Mumbai Central: 90762 01010; mh01taxicomplaint@gmail.com
● Mumbai West: 99202 40202; mh02.autotaxicomplaint@gmail.com
● Mumbai East: 91522 40303; mh03autotaxicomplaint@gmail.com
● Borivali: 85919 44747; mh47autotaxicomplaint@g mail.com
Advocate Shirish V Deshpande is chairman, Mumbai Grahak Panchayat. Queries can be sent to him on email: shirish50@yahoo.com
