The demand for app based cab services like Uber, Ola etc. has increased a lot as people are afraid to use public transport in Corona situation. However, the amount of complaints made by passengers, including drivers, against these companies is not small. Cab companies have been repeatedly accused of failing to pay their dues to drivers, and of charging exorbitant fares in the name of ‘surge price’ at certain times of the day. And so the central government issued a new guideline on the rental of these app-based cabs. From now on, companies like Uber and Ola will be able to take 20% of the total rent themselves. The driver has to pay the remaining 80%. Also, in case of ‘surcharge price’ taken during extra demand, the maximum fare cannot be charged more than 1.5 times the maximum. This control of the central government will benefit both the common man and the driver.
Earlier, there was a demand to increase the commission due to Uber, Ola, etc. to 10%. But according to experts, it would be difficult for them to run the company. That is why the government has decided to increase the commission to 20%. In addition, in the name of surge prices, these companies imposed huge rents on customers. The government has also fixed the surcharge price at 1.5 times in the guidelines. As a result, customers no longer have to pay skyrocketing fares.
The guidelines call on companies to adhere to certain rules to protect the interests of app-based cab drivers. From now on, app-cab companies will not be able to do more than 12 hours of duty with the drivers. Moreover, the company has to arrange insurance for the drivers. This will also ensure the safety of the drivers.
App-cab companies have to get permission from the state government to do business in each state. The state government gives these companies a five-year license. So from now on, the state should also keep in mind the policies in question while issuing the license. If an organization does not comply with the policy, the government may revoke their license.