Upper limit fixed for Ola and Uber commissions
Posted on: 29/Nov/2019 2:46:18 PM
The central government has decided to fix the upper limit for the commissions by the large-scale operators of cab services through App.
Accordingly, the commission, which is 20% at present, is proposed to be reduced to 10%. The new Rules and Regulations will be formed accordingly.
The international organisation Uber was the pioneer in changing the trend of the mode of taxi travel. The local organisation, OLA also plays a substantial role in this field of providing cab services through App with the excellent mode of operation - mentioning the charges, distance, travel time,etc., very clearly before taking it up.
Both these Mobile App taxi service providers, Uber and Ola, receive a commission of 20% from the concerned car owners or drivers. The central government, in this regard, deems that these 2 companies earn a very high charge assuring a good revenue.
So, the central government has now come forward to reduce this high rate of commission and facilitate higher earnings for the cab drivers and car owners.
Accordingly, the prevailing commission of 20% will be reduced to 10%.
The state governments may also levy a fixed percentage of tax on these service providers.
Also, the present rate of 10% to 50% fare charges levied on the passenger on cancellation of service, the maximum limit is to be set not to exceed Rs. 300.
Instead of charging astronomically high rates when the demand for the cabs is high, only a maximum of double the basic travel fare can be charged high when the demand is more!
The base fare per km of travel may be decided by the state government. Or else, it can be as per the service providing company’s decision.
The central government also has a plan to confirm the identity of the cab drivers by taking their facial ID or fingerprint once in 3 hours.
The owner/Chief executive Officer of Ola is Pavish Agarwal. The CEO of Uber call taxi Services is Travis Kalanick from the USA.
