Bengaluru : The new state government in Kerala has come up with a draft policy to regulate cab-hailing services such as Ola and Uber.
The government will initiate broad discussions with all stakeholders this month, A. K. Saseendran, Kerala’s transport minister, said over phone. But he declined to say how long the process will take before the draft gets notified as law.
The draft rules define a cab “aggregator” as a service provider or an operator who acts as a digital intermediary for a passenger to connect with a driver via a mobile phone or web application or through a call centre or by any other means of technology, of a motor cab having a valid permit under the existing rules.
Any entity that is registered under the 1956 Companies Act and complies with regulations under the Information Technology Act (2000) will be allowed to obtain a licence for a three-year period.
In addition to this, each driver who wants to register with a cab-hailing platform will have to pay an annual fee of Rs.100 to the department, says the document, titled Kerala on-demand information technology based transportation scheme (2016).
The draft policy document, which Mint has reviewed, suggests some of the same rules and regulations adopted by states such as Karnataka.
The proposed rules include: mandating aggregators to obtain a licence from the government; prices to be set by the government; aggregators must have a 24×7 call centre available for customers and install GPS-based tracking systems in cabs.
Ensuring safety and security of the passenger will be the responsibility of the company which holds the licence. It proposes a series of mandatory requirements for licencees such as including a panic button in the app and ensuring that drivers have a clean track record.
Any reasonable complaint of harassment by a driver could result in the immediate suspension of the operator’s licence, says the document.
Since the government will set prices, surge-pricing practised by existing online cab operators will end, said commissioner Tomin J. Thachankary, head of Kerala’s transport department, who drafted the report, in a phone interview.
The development comes at a time when app-based taxi aggregators have been facing resistance from authorities in cities across India, even as their popularity grows among the public for the low fares they charge.
In Karnataka, the matter is in the courts after Uber filed a petition challenging the competence of the state government in enforcing rules on cab aggregators.
Ola operates in 102 cities, while Uber plies in 27. Both companies get about 90% of their business from the top eight to 10 cities, the top three being Bengaluru, Mumbai and Delhi.
Ola and Uber did not immediately respond to emails seeking comment on the Kerala draft rules.
“The Karnataka government has created a benchmark for other states to regularize taxi/cab aggregators through mandatory license, and to limit surge pricing. We are extremely pleased with the way Kerala has now taken this up and is working towards taming the city taxi/cab aggregation solution. This step will certainly address a crucial gap in public transport in a constructive manner and improve availability, transparency and safety for passengers, and enhance consumer trust towards city taxis. Moreover it will create level playing field in long term, which is much needed to ensure a healthy competitive scenario.” said Rahul Kapani, director, Meru.
The All Kerala Online Taxi Drivers’ Union (OTDU), which claims it has 2,500 out of the roughly 3,000 drivers who ply for companies such as Uber and Ola in the state, called a strike towards the end of last year to protest against the incentive structure of these companies.
“We are yet to study the regulations,” said T.R.S. Kumar, OTDU president.
@Agency report.
