New rules for Ola, Uber, e-rickshaws in Maharashtra, focus on surge pricing and security

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New rules for Ola, Uber, e-rickshaws in Maharashtra, focus on surge pricing and security
New rules for Ola, Uber, e-rickshaws in Maharashtra, focus on surge pricing and security

The Maharashtra government has issued draft rules for app-based aggregators like Ola, Uber, and e-rickshaws. These include surge pricing and fare controls, driver working hours and training, passenger safety, accessibility features for the disabled, and new licenses and fees.

The Maharashtra government on Friday issued draft rules for app-based aggregators. These rules aim to regulate operators of public transport vehicles. These rules include provisions such as limiting surge pricing, prohibiting fare undercutting, and limiting drivers’ working hours. The state government has sought objections and suggestions from stakeholders on these draft rules by October 17th.

These rules will apply to all passenger motor vehicle aggregators, such as Ola, Uber, and e-rickshaws. The draft rules include mandatory accessibility features for passengers with disabilities.

The aim is to bring greater discipline, transparency, and passenger safety to app-based transportation services.

New Limits on Surge Pricing and Fare Reductions

According to the draft rules, surge pricing cannot exceed 1.5 times the base fare set by the Regional Transport Authority (RTA). Additionally, fares are prohibited from falling below 25 percent of the base rate during periods of low demand. Currently, due to the lack of regulations, the state government has no control over fare increases. Furthermore, the convenience fee charged to passengers should not exceed 5 percent of the base fare, and the total reduction should not exceed 10 percent.

Work Limits and Training for Drivers

The draft rules also stipulate that drivers can only log in to the app for a maximum of 12 hours per day, followed by a mandatory 10-hour rest period. Before onboarding, drivers must complete a 30-hour orientation and motivation training program. Drivers with an average rating of less than two stars out of five will be required to undergo remedial training and face suspension from the platform until they do so.

Focus on Passenger Safety and Convenience

Passengers often face ride cancellations when drivers choose not to travel after knowing the destination. According to these rules, drivers should not be able to see the passenger’s destination before accepting a ride. Aggregator apps will be required to allow live location sharing and trip status tracking. Apps will also be required to provide travel insurance coverage of up to ₹5 lakh.

New Licenses, Fees, and Security Deposits

When obtaining a new license from the State Transport Authority (STA) or RTA, aggregators must pay a fee of ₹10 lakh and ₹2 lakh, respectively. For renewal, they must pay ₹25,000 or ₹5,000. They must also maintain a security deposit based on the number of vehicles: ₹10 lakh for up to 1,000 vehicles, ₹25 lakh for up to 10,000 vehicles, and ₹50 lakh for more than 10,000 vehicles.

Vehicle age and language…

Only vehicles less than nine years old for autos and cabs, and less than eight years old for buses, will be eligible for operation. Aggregator apps will also be required to be available in Marathi, Hindi, and English. Transport Minister Pratap Sarnaik said these rules will help prevent exploitation of drivers and improve service quality.

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