Ma­ha­rash­tra Too may Curb Surge Pric­ing by Uber, Ola

State trans­port dept also rec­om­mends cap on num­ber of ve­hi­cles

The Economic Times - - Front Page - Kr­ishna.The­var @times­group.com

Mum­bai: Taxi apps Uber and Ola may face road­blocks on surge pric­ing and gen­eral oper­a­tions in Ma­ha­rash­tra af­ter the state trans­port de­part­ment rec­om­mended a cap on surge pric­ing and a ceil­ing of 4,000 ve­hi­cles per op­er­a­tor. The state trans­port de­part­ment, which is in the process of draft­ing a new state trans­port leg­is­la­tion, made the rec­om­men­da­tion some months back and the Ma­ha­rash­tra govern­ment will take a call on the is­sue soon.

Ceil­ing may Hurt Cos Badly

trans­port dept has rec­om­mended a ceil­ing of ve­hi­cles per cab ag­gre­ga­tor

if ac­cepted, would mean Uber and Ola would be forced to let go of many driv­ers

are es­ti­mated to have driv­ers each in the state

4,000 This pro­posal,

Trans­port Com­mis­sioner Shyam Ward­hane con­firmed the na­ture of the rec­om­men­da­tion to ET. “We have asked the state to put a cap on surge pric­ing. How­ever the fi­nal call will have to be taken by the cabi­net,” said Ward­hane.

Ma­ha­rash­tra Prin­ci­pal Sec­re­tary (Home), Vi­jay Sat­bir Singh told ET a de­ci­sion will be taken af­ter con­sult­ing all stake­hold­ers. “We have got the rec­om­men­da­tions for a cap on surge pric­ing the is­sue is un­der our con­sid­er­a­tion and we will soon take a de­ci­sion on it, ” said Singh. A cap on surge pric­ing means that Uber and Ola can­not charge more than pre­scribed rate dur­ing peak hours. The ceil­ing on 4,000 ve­hi­cles is a far more se­ri­ous is­sue as both ag­gre­ga­tors will be forced to let go of many driv­ers if the rec­om­men­da­tions are adopted. In­dus­try of­fi­cials be­lieve that Uber and Ola could alone be hav­ing about10,000 op­er­a­tors each in Ma­ha­rash­tra.

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