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Now, West Bengal plans to curb surge pricing

Rule, if passed, will disallow Uber and Ola from charging a fare higher than the limit prescribed by the state

Avishek Rakshit  |  Kolkata 

is following in the footsteps of Karnataka and Delhi to introduce rules to regulate such as and in an attempt to curb surge pricing.

The rule, if passed, will disallow and from charging a fare higher than the limit prescribed by the state. While currently has a fare structure to regulate prices of yellow taxis, buses and other modes of public transport, it does not have a similar rule for taxi aggregators.

“We are thinking of controlling the fare and cannot go on,” the state’s transport minister, Suvendu Adhikari, told Business Standard. “We’ll go through the [Delhi High Court’s] order thoroughly and hold consultations with various departments, analyse public opinion and then formulate a policy to check surged pricing.”

A recent order by the placed curbs on cab aggregators charging higher fare.

and say the mechanism is not used to boost their earnings. Instead, they say it helps attract drivers to an area where there is shortage of cabs with the lure of being able to earn more than the regular fare.

Both companies have tried to work around the ban on surge pricing, with inventing upfront pricing, which shows customers the cost of a ride before they book it, and introducing low-peak pricing that restricts surge to a maximum of the state prescribed fares.

Both companies have fares starting at Rs 6 per kilometer, giving them enough leeway to increase prices to nearly three times that.

“We have received complaints about and will control it. Although things are at a deliberative stage, the state government will soon curb it,” a state official said.

Uber, which has around 10,000 drivers in Kolkata, has already introduced upfront pricing in the city, but transport officials suspect the feature veils and doesn’t offer transparency.

The state government has proposed that not only install physical panic buttons but also closed circuit cameras in every cab. has begun facing resistance in its growth as the state transport department has begun slowing the pace at which it offers commercial licenses because the firm has not followed the rules.

“There are certain challenges that have been identified in implementing CCTV requirements with respect to rider privacy, streaming of the video and potential for misuse during storage of said footage,” an spokesperson said.

Ola, which operates under provisional license, however, has gained the transport department’s favour.

The transport department official said applied for 50 permanent licenses after adhering to the conditions.

and are increasingly facing resistance from states seeking to curb under the pretext of protecting consumer rights. has moved the high courts in Karnataka and Delhi, arguing that states do not have the right to regulate them.

The has reserved its judgment on a plea by calling the state government’s move to regulate cab aggregators as unconstitutional.

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Now, West Bengal plans to curb surge pricing

Rule, if passed, will disallow Uber and Ola from charging a fare higher than the limit prescribed by the state

Rule, if passed, will disallow Uber and Ola from charging a fare higher than the limit prescribed by the state
is following in the footsteps of Karnataka and Delhi to introduce rules to regulate such as and in an attempt to curb surge pricing.

The rule, if passed, will disallow and from charging a fare higher than the limit prescribed by the state. While currently has a fare structure to regulate prices of yellow taxis, buses and other modes of public transport, it does not have a similar rule for taxi aggregators.

“We are thinking of controlling the fare and cannot go on,” the state’s transport minister, Suvendu Adhikari, told Business Standard. “We’ll go through the [Delhi High Court’s] order thoroughly and hold consultations with various departments, analyse public opinion and then formulate a policy to check surged pricing.”

A recent order by the placed curbs on cab aggregators charging higher fare.

and say the mechanism is not used to boost their earnings. Instead, they say it helps attract drivers to an area where there is shortage of cabs with the lure of being able to earn more than the regular fare.

Both companies have tried to work around the ban on surge pricing, with inventing upfront pricing, which shows customers the cost of a ride before they book it, and introducing low-peak pricing that restricts surge to a maximum of the state prescribed fares.

Both companies have fares starting at Rs 6 per kilometer, giving them enough leeway to increase prices to nearly three times that.

“We have received complaints about and will control it. Although things are at a deliberative stage, the state government will soon curb it,” a state official said.

Uber, which has around 10,000 drivers in Kolkata, has already introduced upfront pricing in the city, but transport officials suspect the feature veils and doesn’t offer transparency.

The state government has proposed that not only install physical panic buttons but also closed circuit cameras in every cab. has begun facing resistance in its growth as the state transport department has begun slowing the pace at which it offers commercial licenses because the firm has not followed the rules.

“There are certain challenges that have been identified in implementing CCTV requirements with respect to rider privacy, streaming of the video and potential for misuse during storage of said footage,” an spokesperson said.

Ola, which operates under provisional license, however, has gained the transport department’s favour.

The transport department official said applied for 50 permanent licenses after adhering to the conditions.

and are increasingly facing resistance from states seeking to curb under the pretext of protecting consumer rights. has moved the high courts in Karnataka and Delhi, arguing that states do not have the right to regulate them.

The has reserved its judgment on a plea by calling the state government’s move to regulate cab aggregators as unconstitutional.
image
Business Standard
177 22

Now, West Bengal plans to curb surge pricing

Rule, if passed, will disallow Uber and Ola from charging a fare higher than the limit prescribed by the state

is following in the footsteps of Karnataka and Delhi to introduce rules to regulate such as and in an attempt to curb surge pricing.

The rule, if passed, will disallow and from charging a fare higher than the limit prescribed by the state. While currently has a fare structure to regulate prices of yellow taxis, buses and other modes of public transport, it does not have a similar rule for taxi aggregators.

“We are thinking of controlling the fare and cannot go on,” the state’s transport minister, Suvendu Adhikari, told Business Standard. “We’ll go through the [Delhi High Court’s] order thoroughly and hold consultations with various departments, analyse public opinion and then formulate a policy to check surged pricing.”

A recent order by the placed curbs on cab aggregators charging higher fare.

and say the mechanism is not used to boost their earnings. Instead, they say it helps attract drivers to an area where there is shortage of cabs with the lure of being able to earn more than the regular fare.

Both companies have tried to work around the ban on surge pricing, with inventing upfront pricing, which shows customers the cost of a ride before they book it, and introducing low-peak pricing that restricts surge to a maximum of the state prescribed fares.

Both companies have fares starting at Rs 6 per kilometer, giving them enough leeway to increase prices to nearly three times that.

“We have received complaints about and will control it. Although things are at a deliberative stage, the state government will soon curb it,” a state official said.

Uber, which has around 10,000 drivers in Kolkata, has already introduced upfront pricing in the city, but transport officials suspect the feature veils and doesn’t offer transparency.

The state government has proposed that not only install physical panic buttons but also closed circuit cameras in every cab. has begun facing resistance in its growth as the state transport department has begun slowing the pace at which it offers commercial licenses because the firm has not followed the rules.

“There are certain challenges that have been identified in implementing CCTV requirements with respect to rider privacy, streaming of the video and potential for misuse during storage of said footage,” an spokesperson said.

Ola, which operates under provisional license, however, has gained the transport department’s favour.

The transport department official said applied for 50 permanent licenses after adhering to the conditions.

and are increasingly facing resistance from states seeking to curb under the pretext of protecting consumer rights. has moved the high courts in Karnataka and Delhi, arguing that states do not have the right to regulate them.

The has reserved its judgment on a plea by calling the state government’s move to regulate cab aggregators as unconstitutional.

image
Business Standard
177 22

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