Uber objects to fare limits, higher permit fees

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App-based taxi aggregator Uber has raised objections against the state government’s proposal in the draft Maharashtra City Taxi Rules 2016 for minimum and maximum fares. It said  pricing should be based on economic models of demand and supply, and not determined by regulations.

Uber in its representation to the government argued that a cap on the minimum fare would prevent market forces determining cheaper rides when possible.

Uber has received support from 118,000 riders to its online petition against some of the rules.

Uber (Mumbai) General Manager Shailesh Sawlani said, ‘’Certain elements of the draft risk the very progress we have made.’’ He insisted there should be less regulation in order for companies like Uber to continue to provide services to commuters.

On the government’s proposal that more that 50 per cent of the vehicles on ride-sharing platforms be over 1,400 cc, Sawlani said it would mean economical and fuel-efficient vehicles would disappear from the platform. ‘’It also takes away the  flexibility of drivers to have the vehicle of their choice, forcing them to buy more expensive cars, which will in turn increase fares,’’ he noted.

Sawlani also raised concerns over the government’s move to prescribe permit fees of Rs 2.61 lakh for cars above 1,400 cc. ‘’This will also create barriers to accessing economic opportunities for drivers,’’ he said.

‘’Taken together, these moves strike at the heart of our promise of ensuring affordable and convenient rides. They jeopardise the benefits ride-sharing brings in terms of reduced congestion,’’ Sawlani said.

When contacted, a state transport department official said the department would look into the suggestions made by Uber on the draft Maharashtra City Taxi Rules.