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Will Government regulate Ola and Uber Fares?

Created on 29 Nov 2019

Wraps up in 3 Min

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Updated on 12 Sep 2022

Ola & Uber being regulated by the Government

Good news folks! Ola and Uber won’t be able to charge arbitrary commissions. Central Government is also preparing for other customer-friendly regulations.

Read about the whole news below.

Our central government is probably being snobbish (in a positive way) or proactive or whatever it is but, it is good for the common people. We’re talking about the proposed cap on cab aggregators’ fee. Till now, convenience was coming at a cost that was being randomly decided by Ola and Uber.

But now, this might change because the commission charged by ride hailers like Ola and Uber is going to be capped. According to a news report, the 20% fee might be halved to 10% and what’s even better is that this regulation will be accompanied by other ‘customer-friendly’ rules as well which the cab aggregators have to abide by.

About the Announcement 

People’s benefits come first and any initiative in that direction is welcome. No one can deny the problems that people were facing with excessive surge pricing, arbitrary ride cancellations etc by Ola and Uber. Now, with a limit on commissions we could expect things to get better.

Another speculation is that the central government would cap the surge pricing as well. Yes, that’s true! It is being proposed that surged prices would also be capped and they will not be more than twice the base fare. Although, the base fare would be decided either by the state government or the cab aggregator, as the arrangement goes.

Other Proposed Amenities

Besides customer convenience, another important aspect that is being addressed is safety. If all goes as planned, every ride would receive insurance cover of Rs. 5 Lakhs. Also, the cab aggregators in order to ensure customer safety will verify the identity of driver either through biometrics or facial recognition.

For women, a special pool option is on cards. In this, females would be able to choose a ‘female-only’ option while pooling a cab. Another important amendment in making is a cancellation penalty to be charged to drivers for cancelling rides. We know you’ll be celebrating inside after reading this, if you have suffered due to drivers cancelling rides.

When will the Regulation Take Effect?

After reading all that’s expected to be rolled out, an obvious question intriguing you would be WHEN. So, it’s expected that the proposed regulations in Ola and Uber  would be implemented by the end of this year. In case you’re making a sad face and thinking- “One more month?” it’s ok folks, good things take time. A month is definitely worth waiting if proper implementation can be ensured.

The Other Side

It’s always better to know the other part of the story as well before reaching a conclusion. So, here’s a bit of a spoiler. Cab aggregators perform surge pricing to attract drivers in odd situations and times. So, if it’s a situation where the drivers aren’t available or it’s an odd time of the day, the surge pricing will get you a ride. Yes, that’s the reality.

Demand and Supply are equally important and hence, every effort should be made by government to balance it. The suppliers (cab aggregators) in this case might find ways to make up for their losses which in turn, wouldn’t be economically profitable for the customers.

Also, if the cabs' availability declines due to stringent regulations, that again would affect the customers adversely. So, the ultimate effect would only be clear post a trial.

Hope you liked this information. Comment below with your opinions/suggestions.

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Rishika Mukherjee

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Mukherjee is an avid reader and loves to write as much as read. She is the youngest of all but handles chores like a 50-year-old woman. She takes a lot on her plate and somehow, eerily manages to get the job done. As Hazel Grace stated, she could read a good author's grocery list, and so would Miss Mukherjee. 

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