Much Awaited Karnataka’s Aggregation Rules Against Surge Pricing Comes In to Effect

The new guidelines for taxi-hailing aggregation services have been laid out by the transport department of Karnataka.

As per the new Motor Vehicle Act that has been amended with effect from April 2, rates are fixed by the government for all aggregators licensed to operate. As per new norms, the maximum fare will be capped at Rs 19.50 per km for AC cabs and Rs 14.50 per km for non-AC cabs. At any point in time, the cab services cannot charge users more than the maximum prescribed fare.

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“Taxis will not be allowed to charge more during peak hours. But the operators can certainly lower tariff to gain a competitive edge,” HG Kumar, Additional Commissioner, State Transport Authority told ToI.

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The new rule is amended under Sub-section 1 of Section 212 of the Motor Vehicles Act, 1988.

The government has also mandated certain rules only for taxi aggregators in state:

– GPS/GPRS systems are a must. The rules spell out technical specifications of the devices to be used.
– Control rooms are a must. A system through which a panic button pressed by the passenger can alert police is mandatory.
– Refresher courses for drivers on gender sensitization, safe driving and etiquettes should be documented for a year.

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