App-Based Cab Services to Get Better in Chandigarh, No Scope for Overcharging


With the advent of app-based cab services and the convenience they provide, we are a hassle-free lot. We do face problems sometimes at the hands of the service providers like Ola, Uber, InDriver, but not any longer. Chandigarh administration has issued directions to immediately implement Motor Vehicle Aggregators Guidelines 2020, which will regulate fare calculation, price hike, and ride cancellation charges, which will significantly bring down the total fare. Let us take an overview of how these guidelines will help passengers and what responsibility has been fixed on the cab app companies:ow

How do passengers benefit?

  1. At present, passengers are charged upto twice the base price during surge pricing in peak hours, but the new guidelines limits surge pricing to 1.5 times the base fare.
  2. The cancellation charges for both the driver and the rider have been capped at 10% of the total fare. Currently, cab aggregators charge arbitrarily, sometimes as high as ₹50, for a cancellation.
  3. No sudden rise in fare hike:

Consumers will be saved from a sudden increase in taxi fares as WPI (Wholesale Price Index) is revised only once, i.e when WPI figures are declared.

According to guidelines issued by the Union ministry of road transport and highways, the fare indexed with WPI is ₹18 for the current year. It will be the base fare for a minimum of 3 km in Chandigarh as well. In case of inter-city rides to cities where the guidelines have not been put in place yet, the base fare shall be ₹25 to 30.

It will benefit the aggregators as well because during inflation period, the WPI will ensure that real income of operators doesn’t fall.

  1. Pool ride facility for women

    Women standing near cab

Moreover, women who want to avail ride pooling will be provided the option to pool only with other female passengers.

According to the Motor Vehicle Aggregator Guidelines – 2020, implemented in the UT, aggregators (cab service providers  like Ola, Uber) may provide pooling facilities to riders whose details and KYC are available and who will be travelling along the same route but with varied stoppages from one point to another under a virtual contract through the app. The UT Administration may relax the detour specifications in order to provide accessibility in urban agglomerations and areas beyond the limits of the Municipal Corporation.

A man Stopping a cab

5. The app shall be accessible in English and Hindi as the primary languages for the rider along with one official language of the relevant state where the official language is not Hindi. Additionally, the app shall be accessible in such language that is understandable by the driver.

Fixing Company (cab provider)’s responsibility

  1. For the safety of passengers, aggregators (cab provider) will ensure appropriate functioning of the GPS installed in the vehicle and provide efficient resolution for any issues that may develop in its functioning.

They will also have to ensure that the driver plies the vehicle on the route assigned on the app and in non-compliance of the same, develop a mechanism wherein the app device indicates the fault to the driver and the control room of the aggregator immediately communicates with the driver with regard to the same.

2.  The aggregator will have to enforce a mechanism on the app to ensure that the identity of the driver undertaking a trip is same as the one enlisted with the aggregator requiring verification every time a trip is accepted.

3. Aggregator will have to ensure that the data generated on the app is stored on a server in India and that such stored data will be for a minimum of three months and a maximum of 24 months from the date on which such data is generated. This data shall be made available to the government as per the due process of law. Any data related to customers shall not be disclosed without the written consent of the customer.



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