Free run for app-based taxi services like Uber and Ola may end soon as the government is keenly examining possibilities to bring these aggregators at par with the existing radio taxis under the Motor Vehicles Act.
"The taxi apps have been able to take advantage by offering cheaper fares and free rides, much to the dismay of radio taxis, which often follow a minimum floor price."—said a report in The Economic Times.
Even though these app-based services are recognised as transport aggregators by the road transport ministry, there has been an increasing realization that these services should function like any other cab service in the country as per the rules laid down in the Motor Vehicles Act.
Among the measures that have been suggested are these vehicles must have a permanent GPS installed in them instead of a mobile phone and should also offer the services of call centres to customers.
According to The Economic Times report, norms are likely to be framed on regulating the maximum price to be charged by these operators while thoughts are also being given to see if the minimum price mechanism as charged by some radio taxis in some states can be done away with.
The government is looking into the regulatory matters concerning the taxi hailing apps as it intends to offer a level playing field for the existing radio taxi operators and restrain the taxi hailing apps fleet zoom away with all operational advantages.
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Updated Date: May 29, 2015 15:26:40 IST