Union Government’s New Rules For Ola, Uber: Here’s All You Need To Know

In todays time of commuting, ride sharing apps like Ola and Uber have become a boon. They pick you up from home & drop you at the exact location without requiring you to navigate throughout the way.

When the services initially started, with lucrative cuts and incentives it lured several cab drivers. However, off recently, drivers have been disappointed as the incentives have dropped and the targets to achieve existing incentives have become harder to reach.

We’ve seen several strikes in the past, asking Uber and Ola to get an appropriate remuneration for their hard work, but none.

Ola Uber

Looking at this the government has been working on issuing guidelines, and as per the new one taxi aggregators will be able to charge up to 20 percent commission on ride fares, quashing an earlier proposal that sought to cap this commission at 10 percent.

Experts warning the 10 percent cap could severely affect the revenue and operation of ride-hailing app Uber. The final guidelines that need to be acknowledged by the state governments across the nation before issuing licenses to aggregators states that the drivers are eligible to receive 80 percent of the total fare with 20 percent going to the cab company.

Some positives in the guidelines are that companies have been asked to provide an insurance cover for drivers. Moreover, they also ask ride-hailing services to limit working to 12 hours each day.

New guidelines have some easements on surge pricing that the cab services charge during high demand. A surge-hike limit has been allotted and it cannot exceed 1.5 times the base fare.

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