Maharashtra CM calls meeting to mull curbs on surge pricing by taxi aggregators

Fare to be decided based on the cost of the vehicle and its engine capacity

Maharashtra Chief Minister Devendra Fadnavis has convened a meeting on Monday to consider the transport department’s proposal to introduce curbs on surge pricing, the number of taxis  and the permits for taxi aggregators such as Ola and Uber.  

According to the Maharashtra Motor Vehicles (Amendment) Rules, the licensee shall maintain a fleet of a of minimum 1,000 taxis and a maximum of 4,000, either owned or through an agreement with individual taxi permit holders. However, a maximum of 2,500 permits will be issued to a licensee in the first phase.

Further, the licensee shall charge fares and comply with all other conditions as prescribed by the concerned transport authority from time to time. More importantly, fare will be decided according to the cost of the vehicle and its engine capacity.

State Transport Minister Diwakar Raote told Business Standard, “The department has made a strong recommendation in favour of curbs against surge pricing by taxi aggregators. The chief minister has convened a meeting on August 8. A final decision will be taken by the CM.” He admitted that the department has received several representations from traditional taxi operators against the aggregators, with a special plea to ensure a level playing field.

New framework for Aggregators

Maintain minimum 1,000, maximum 4,000 taxis; maximum 2,500 permits to be issued in first phase to licensee

Provide round-the-clock services, hire more women drivers

Charge fare, comply with other conditions fixed by transport authority

Ensure minimum fleet of 1,000 taxis at all times or face licence cancellation, invocation of bank guarantee

According to the induction schedule envisaged in the rules, the licensee can induct 250 taxis at the time of grant of licence, 500 within three months, 1,000 within six months and the rest in nine months of grant of licence. Failure to adhere with the time line will entail a penalty of Rs 25,000 per month for a period of six months and thereafter, the department will be free to revoke the licence and forfeit the bank guarantee of Rs 50 lakh.

It will be mandatory for the licensee to maintain a minimum fleet of 1,000 taxis at all times after the induction period, failing which the licensee will be liable for cancellation. Moreover, the licensee shall maintain a web portal containing all details.

A state transport department official said the Union Cabinet had given approval to bring taxi aggregators under the ambit of Motor Vehicles Act. “However, the Centre will allow states to frame the necessary rules for the effective implementation of the proposed Act. The state has drafted its own rules especially to cover the aggregators,” he said.