After Karnataka government’s decision to curb surge pricing by taxi aggregator, it is now Maharashtra government which is planning to adopt the same. As per reports, the state transport department is planning adopt concrete policies on fare fixation to curb surge pricing.

‘’The fare will be decided on the cost of the vehicle and the engine capacity. The transport department will enjoy powers to cancel licences for non-compliance,’’ a Maharashtra minister said.

The proposed rules for taxi aggregators will go beyond what Karnataka has introduced i.e. induction schedule for taxis, where only 25% of the fleet can be acquired at the time of being granted the licence, 50% in three months, 75%  in six months and 100 per cent in a year. The proposal has been sent to the government.

The rules, if imposed, will definitely benefit customers, however, it will be harsh for the cab hailing apps. It might even put driver partners of Uber and Ola out of work for weeks/months.

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