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New guidelines set by Central Government for Ola & Uber

Central Government has decided to fasten the loop around cab aggregators including OLA and Uber. New regulations were imposed which might be of benefit from the consumer perspective whereas making work difficult for the companies. New regulations include capping of commission rates and limiting price surge. The new regulations are aimed at bettering consumer experience and ensuring safety of passengers.

Key aspects of the new regulations include capping of commission. Cab aggregators will have to cap commission rates to 10% of the total fare. Addressing the complaints from consumers regarding surging price during peak hours, government will put a stop to the practice also.

Government of India has suggested that Cab drivers should be well trained and certified. Ownership of cabs should be clearly stated beforehand so as to make processes during accidents transparent. Cab aggregators should also have a 24 X 7 helpline number. All these regulations will be added to the amended Motor Vehicles Act 2019.

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