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Centre approves surge pricing with conditions

Uber and Ola should validate algorithms used for distance and fare calculation.

Kochi: With the ministry of road transport and highways issuing Taxi Policy guidelines, the government is set to bring Uber, Ola and other App based taxi aggregators under government control. Though the government decided to approve surge pricing, Uber and Ola should validate algorithms used for distance and fare calculation. Quality of these software applications should be audited by from Standardisation Testing and Quality Certification (STQC) or any other agency authorised by Ministry of Electronic and Infor-mation Technology (MEITY), on a one-time basis, the guidelines said.

Aggregators should preserve and provide on demand the data regarding taxi trips and customers for a period specified by the state transport, police or any other enforcement authorities as per law. Another major directive to the state is to allow bike taxis. The Centre recommended conversion of existing private bikes into taxis. Niti Aayog, member of the committee which prepared the guidelines, stressed the need for bringing surge pricing under control.

The guidelines stipulate that in order to protect the consumers in emergency situations, there can be a clause to suspend or cap surge during heavy rain, floods or any other emergency situation. To ensure safety, the guidelines mandate that consent of the consumers should be obtained to share personal data and it should be ensured that all the data is protected by a firewall. However, if any such data is requisitioned by any enforcement agency then the aggregators would be bound to provide the same.

With the guidleines Uber or Ola can also bring three-wheeler autorickshaws under aggregation which would offer convenience to the commuters. Ride-hailing firms Ola and Uber have welcomed the revised guidelines for the taxi industry saying these would allow the sector to "continue to flourish". The taxi aggregators, however, expressed concerns on price caps and price floors. Amit Jain, President of Uber India described the revised guidelines as an important milestone in the development of ridesharing in India.

"(This) will help the industry better serve riders, drivers and cities in the years ahead. While there are concerns on price caps and price floors, the framework will allow the industry to continue to flourish," he added. Pranay Jivrajka, the Chief Operating Officer at Ola, said the guidelines are progressive and forward looking for the ride sharing space. "This is definitely a significant move in the interest of India's unique and growing mobility needs, which need to be addressed holistically," he added.

( Source : Deccan Chronicle. )
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