Q. It is a common experience that Ola and Uber charge exorbitant rates during peak hours. Earlier, they used to charge relatively low rates during off-peak hours. However, of late, I do not see such rates. Does the government have any control over the rates? Is there no cap on these price hikes? Why can’t the government regulate the rates like it does with ‘Kali Peeli’ cabs and auto-rickshaws in the interest of passengers? It is also seen that Ola and Uber drivers sometimes cancel bookings, which creates trouble. This is especially the case when the cab is booked for early morning to the airport or for emergency to the hospital. Where can one complain about Ola and Uber?
—Abhay Datar, Girgaum
As per the Motor Vehicles Act, 1988, the state government is required to regulate the services of taxi aggregators like Ola, Uber, Meru, etc. The central government issued model guidelines for the states to regulate these services in 2020. However, the Maharashtra government has been somehow hesitant to bring in rules to regulate these companies.
Last year, the government appointed a six-member expert panel chaired by former transport minister Sudhirkumar Srivastava. The panel submitted its report to the government in January 2024 and is now awaiting approval from the chief minister. Press reports indicate that the panel has recommended a cap on the fare hikes by taxi aggregators. It is believed that it has recommended a maximum hike price that should be 1.5 times the base fare. At the same time, the reduction during off-peak hours will not be more than 25% of the base fare to prevent cut-throat competition.
The base fare for customers using aggregator services will be the city taxi fare, indexed by the wholesale price index for the current year. In states where the taxi fare has not been fixed yet, the base fare will be Rs 25 or Rs 30. Regarding arbitrary cancellation of rides by drivers, the committee is said to have recommended a cancellation fee. The maximum fee for a cancelled ride has been fixed at 10% of the fare, with a cap of Rs 100. This amount will be directly credited to the passenger’s account.
To avoid inconvenience to passengers travelling to airports, railway stations or hospitals, the committee has recommended a penalty that can be up to five times the normal penalty. Such higher penalty is intended to deter drivers from irresponsible and arbitrary cancellations and save passengers from last-minute hassle. If the passenger cancels the booking, the cancellation fee will be 5% of the fare. The committee has considered the objections of all stakeholders, including the Mumbai Grahak Panchayat (MGP), on behalf of the passengers.
It has been almost eight months since these recommendations were made and it is high time the CM took the time to listen to the report. Meanwhile, anyone who wants to complain about Ola, Uber etc. can do so through their respective apps.
Complaints regarding cancellations or driver misconduct etc. can be submitted to the RTO offices through mobile phone or email to the ID given below:
● Mumbai Central: 90762 01010; [email protected]
● Mumbai West: 99202 40202; [email protected]
● Mumbai East: 91522 40303; [email protected]
● Borivali: 85919 44747; mh47autotaxicomplaint@g mail.com
Advocate Shirish V Deshpande is the Chairman of the Mumbai Grahak Panchayat. Enquiries can be sent to him via email: [email protected]
