AAP Government formulates app-based cab operator regulation policy

A radio taxi association alleged app-based cab providers were operating without licenses and overcharging their customers.

The association had filed petitions with the Delhi High Court stating that the government had not taken any action against such app-based cab companies.

On the other hand, Ola accused its arch-rival Uber of not complying with the court orders and also charging customers beyond prescribed fares.

The Delhi High Court said there was a need for a "good and model law" for regulating mobile app-based cab services like Uber and Ola in the national capital.

Justice Manmohan stated a panel would hear all stakeholders, including radio taxis, and consumers, and frame a model law.

The court was hearing to petitions filed by Ola and a radio taxi operator association.

The court noted Ola's affidavit that stated it doesn't charge customers beyond the rate stipulated by the government.

Uber was asked not to charge beyond the stipulated rate; the company said surcharges and additional fares are charged only 3-4% of the cases.

Uber said it would follow the stipulated rates if other cab providers can match its fares that are half the prescribed fares.

The Delhi Government has framed a policy for mobile app-based cab services like Uber, Ola, etc.

Lieutenant Governor Najeeb Jung will review and approve the policy after which the Delhi Government would notify it.

The policy requires all app-based cabs to follow the meter system, within the government approved, prescribed rate.

Also, surcharge or fare beyond the fixed rate is restricted by the policy.

On the orders of the Delhi High Court, the Delhi Government formulated the policy that prescribes a limit of fare that could be charged by cab services.

According to the policy, it is mandatory for the taxi services to inform commuters about the tariff along with the installation of GPS.

The AAP Government framed the policy to control fare irregularities by app-based cab services.

The Delhi HC's panel of two senior officials each from the Centre and the Delhi Government and another expert would discuss the policy with the stakeholders.

The court listed the regulation policy for app-based cab providers matter for hearing on 11 Aug'16.

It said cab companies would be required to abide by the fares stipulated by Delhi Government until a model law is brought.

The Delhi High Court has set 22 August 2016 as the date beyond which cab-aggregators like Ola and Uber will not be allowed to use their own fares for rides.

Based on the decision, after 22 August, all cabs will have to operate on Delhi government allotted fares.

The companies have been given 10 days to update their software for compliance.