Delhi Government in proposition to fix a limit of fares for radio taxi aggregators

India: A senior level government authoritative panel while recommending a stricter policy rule for all the application-based radio taxi aggregators such as Ola, Uber and others, suggested to limit an upper cap on their taxi fares, recently.

The panel consisting of state transport ministers, authorized by the centre to frame stricter traffic and road safety rules advised to liberalise a city taxi permit scheme, wherein, the radio taxi aggregators will have to follow the regulations relating to fares, fuel and safety as mandated by the transport department. Along with obeying the rules an upper cap for fares is likely to be fixed by the transport department.

Besides that, the panel of ministers at the meeting held in Dharamsala, Himachal Pradesh also appealed that only those taxis (operated by cab aggregators) which have legally valid permits should be allowed to move in states.

While discussing the schemes for cab aggregators, the panel of ministers recommended various policies such as minimum 20% space reservation in public parking lots for taxis to overcome the parking issues and also to promote low-cost last mile connectivity solutions including e-rickshaws and two wheeler taxis, as they are comparatively an economical solution for passengers.

The ministry panel, headed by the Rajasthan transport minister, Yunoos Khan, also recommended to strengthen rural transportation that included introduction of various schemes by the Centre for rural transport vehicles and distribution of permits, as well.

The Centre has formed the panel for framing stricter penalties under the new road safety bill that include imprisonment for offences such as minor driving, over speeding, drink & drive, talking over phone while driving and jumping red lights. The final opinion by the panel of ministers is anticipated to take place by the end of June 2016.

According to a recent report published by TechSci Research, “India Radio Taxi Services Market Forecast and Opportunities, 2020” radio taxi services market in India has been exhibiting strong growth over the last few years with Tier-I and Tier-II cities witnessing vast improvements in their transportation systems. With changing travellers lifestyle and preferences, an increasing number of people in the country, prefer well-maintained, on-time taxi services.

As per TechSci Research, backed by several benefits offered by radio taxi operators such as safe, reliable and comfortable travel experience, online booking/payment option, booking through apps, 24x7 availability, promotional discounts, etc., customers are increasingly shifting from traditional unorganized taxis to organized radio taxis. However, the growing taxi services in the country, especially in capital region, has forced the state government to form a regulatory responsible for radio taxi operations, considering the welfare of citizens.