Chandigarh notifies rules for app-based cabs; maximum fare, commission capped

According to the state transport authority, at present there are 1700 app-based cabs of Uber operating in the city. Of these, 1241 are registered in Punjab and Haryana, with the remaining being registered in Chandigarh. As for cab aggregator Ola, data showed that there are 2317 cabs that plied in the city, of which only 215 are registered in Chandigarh, with the rest being registered in Punjab and Haryana.

According to the guidelines implemented on Thursday, aggregators were to be defined as a digital intermediary or marketplace, allowing passengers to connect with a cab driver.

As per the guidelines, the fare indexed to WPI will be the base fare for a minimum of 3 km. A maximum surge pricing of 1.5 times the base fare is allowed. In case there are no city guidelines, Rs 25-30 shall be the base fare.

“The state government may directly charge two per cent over and above the fare. The cancellation charge for the driver and the rider has also been capped at 10 per cent of the total fare,” the guideline says.

Officials stated that with this notification, a licence issued by the state government will be a mandatory prerequisite for permitting business operations by aggregators and it will be valid for a period of five years.

It was also said that licences can be suspended if there is a ‘systemic failure’ to ensure the safety of the rider and the driver and violation of contractual obligations.

No 24×7 helpline

Till date, no 24×7 helpline of the state transport authority has been launched where one can file a complaint. Only an office number is available, which works during office hours.

Aggregator commission capped

According to the guidelines, public transport aggregators like Ola and Uber need to give drivers 80 per cent of the fare, and can only keep with themselves a commission not exceeding 20 per cent.

Cancellation rules

On cancellation of a booking by a driver, subsequent to accepting a ride on the app, a penalty of 10% of the total fare not exceeding Rs 100 shall be imposed, when such cancellation is made without such valid reason. The same is to be mentioned by the aggregator on its website and on its app.

Similarly, on cancellation of a booking by a rider, subsequent to booking a ride, a penalty of 10% of the total fare not exceeding Rs 100 will be imposed, when such cancellation is made without a valid reason. The penalty amount thus collected is to be divided between the driver and the aggregator in the same proportion.

Driver experience

According to the guidelines, it was specified that a driver must have at least two years of experience when he/she/they sign up with an aggregator.

If not, then they are to be provided a 15 day training by the aggregator.

It was also specified that the aggregator has to start operations six months from the date of grant of the licence, failing which the permit stands to be cancelled. It has to arrange by itself or through a third party a driving test facility with a simulator.

For the welfare of drivers, besides health insurance, aggregators have also been mandated to provide a term insurance for each driver for not less than Rs 10 lakh with base year of 2020-21 and increase the same by 5 per cent annually.

Four ride sharing intra-city trips

The notification stated that a maximum of four ride-sharing intra-city trips a day and a maximum of two ride-sharing inter-city trips per week shall be permitted for each vehicle with the aggregators.

It was also said that such vehicles shall obtain an insurance of at least Rs 5 lakh for the ride-sharers in the vehicle, other than the owner or driver integrated with the aggregator.

Ride pooling for woman passengers

The notification also stated that woman passengers seeking to avail ride pooling shall be provided the option to pool only with other female passengers.

When can a licence be cancelled?

The guidelines stated that a show cause notice shall be issued for cancelation of licence, if the aggregator:
(a) has received more than three suspensions within one financial year; or
(b) has failed to receive its license and NoC pursuant to a second examination of the Continuing Suspension Order; or
(c) is responsible for the commission of a gross offence as categorized by the state government under Clause 16(1)(d) above.

(2) The competent authority may within two days of issuing the show cause notice provide an opportunity of hearing to the aggregator and thereafter cancel the licence.