Uber, Ola, More App-Based Cab Aggregators Can Charge 20 Percent Commission
India will allow app-based taxi aggregators such as Uber and Ola to charge up to 20 percent commission on ride fares, according to guidelines issued on Friday, diluting an earlier proposal to cap fees at 10 percent.
Industry experts had warned that a 10 percent cap would hit revenue and operations of the likes of Uber, which have faced increased regulatory scrutiny in several countries.
The final guidelines, which are to be considered by the state governments when issuing licences to aggregators, say drivers should receive 80 percent of the ride fare with the taxi companies receiving the remaining 20 percent.
The new rules come at a time when ride-hailing companies have seen revenues drop as travellers turn to personal vehicles to ensure safety and social distancing to reduce the risk of catching the novel coronavirus.
Additionally, several companies have continued to mandate remote working rules, impacting demand for taxis.
The government guidelines recommended that so-called surge prices at busy times can be a maximum of 1.5 times the base fare and that companies must provide insurance cover for drivers and limit them to working no more than 12 hours a day.
