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Cab surge pricing can’t exceed twice the base fare: Delhi govt notifies new scheme

The new 'Delhi Motor Vehicle Aggregation scheme' also proposes the aggregators to have 100 % electric three-wheelers, and 75 % of e-cars in the next four years.

By: Express News Service | New Delhi |
Updated: July 5, 2022 4:06:20 pm
Once the scheme comes into effect, the cab aggregators cannot charge double the base fare.

The Delhi Government Tuesday notified the ‘Delhi Motor Vehicle Aggregation scheme’ that defines the regulatory framework for fleet aggregators, e-commerce companies, and food delivery companies. It has also invited suggestions from the public before the scheme is finally notified under the law.

As per the proposed scheme, the cab aggregators who increase the fare during the peak hour demand and festivals period cannot double the price. Once it comes into effect, the cab aggregators cannot charge double the base fare. They will only be allowed to charge fare, including maximum surge pricing not exceedingly twice the base fare.

“The aggregators shall be allowed to charge a fare with maximum surge pricing not exceedingly twice the base fare as specified by the Transport Department, GNCTD from time to time,” says the proposal.

The main aspect of the new scheme is to regulate the services of cab aggregators who ply their vehicles in the National Capital Territory (NCT) of Delhi and to boost the usage of electric vehicles by bringing the provision of such services into alignment with the Delhi Electric Vehicles Policy, 2020.

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‘All new vehicles shall be electric’

According to the scheme, all the new vehicles engaged by the aggregators shall be electric. After grant of the aggregator licence, there should be at least 10 new electric vehicles (EVs) on board by the aggregator, within the first six months from the day of grant of licence. The government has set a timeline for the aggregator to adopt EVs. In the next four years, there should be 100 per cent electric three-wheelers, while 75 percent of four-wheelers, mostly cars, should be electric.

Further, by April 2030, the aggregator will have to completely adopt e-vehicles.

The scheme, which has set several rules and guidelines for cab aggregators to run their business in Delhi, will be applicable to the firms with at least 25 vehicles in their fleet.

Quarterly reports on driver ratings

The other key proposals are submission of quarterly reports on driver ratings and grievances received against them to the transport department. It also proposes compulsory remedial training for drivers with a rating less than 3.5 over a period of one year.

Also, all the aggregators operating more than 25 vehicles would be required to take a licence for plying in the NCT region of Delhi, and the applicant seeking licence to operate as an aggregator shall either be a society registered under Cooperative Societies Act, 1912, or company Company’s Act 1956/2013 formed by an association of drivers or motor vehicle owners or such other association or a limited liability partnership under the Limited Liability Partnership Act, 2008.

The aggregator should also register a company in the country and register themselves as a notified portal as prescribed by the transport department. The scheme also proposes the aggregator to have an established call centre in Delhi that gives information in Hindi and English.

It also says that the transport department shall be provided access to a web-based portal to enable the aggregator to update the details of vehicles and drivers integrated with users so as the transport department and investigation authorities can ensure passengers’ safety.

The cab companies will be fined with Rs 25,000 if they fail to apply for licence and declare the onboard vehicles and drivers currently operating in NCT within three months from the date of notification. An amount of Rs 15,000 will be fined for not providing the information about the vehicles operated by aggregator in Delhi.

Further, the transport department will have the power to cancel or suspend the licence of cab aggregator if they found violating these laws or indulged in any unlawful activities.

The draft scheme is uploaded on the transport department’s website and the Switch Delhi website. The notice is hereby given that the said draft will be taken into consideration after the expiry of a period of 21 days from the date of publication of this circular, said the transport department in a circular.

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First published on: 05-07-2022 at 04:04:51 pm

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