Competition Comm plans study on taxi, auto aggregators' market

Competition Commission is planning to conduct a study about surge pricing and other aspects related to the market for auto and taxi aggregators, according to a senior official.

Amid auto and taxi-hailing apps gaining popularity and attracting more users, there are persisting concerns over possible anti-competitive practices with respect to tariffs charged at different points of time.

While certain complaints of alleged unfair business practices against cab aggregators have been rejected by the Competition Commission of India (CCI) on earlier occasions, the regulator is looking to have a better understanding about this market.

CCI Chairman D K Sikri today said the regulator is planning to carry out a study about the market for "ride hailing" apps so that it can have a better understanding and then advice state governments more effectively.

Various aspects, including surge pricing, would be looked into, he said, adding that it also needs to be understood whether there is a need to have some kind of regulations in this regard.

Surge pricing refers to price at a particular point of time when the demand is generally high compared to the availability of services.

"When we do advocacy with governments, (we) must be sure of the sectoral knowledge," Sikri said.

Speaking on the sidelines of a conference organised by not-for-profit group CUTS International, the CCI chief emphasised that competition law is a new dimension added for market and market practices. "But it cannot be a panacea for lack of good governance. It best can play a supplementary role," he noted.