The rise of cab and bike taxi apps in India has simplified travel for many, but has also led to scrutiny of their practices. The recent penalty against Rapido, due to misleading advertising and unresolved customer complaints, highlights the need for stricter regulations, not just for Rapido, but for major players like Ola and Uber as well. Customers frequently complain about drivers canceling rides without proper justification after booking, resulting in direct charges to users. Another common issue is the discrepancy between the fare shown on the app and the actual payment made.
Furthermore, surge pricing, where fares are significantly increased during peak hours, adds financial burden on consumers. This leads to questions about the accountability and transparency of these companies, especially given their significant profits.
The government has recently allowed companies to charge up to double the fare. They can now charge up to twice the base fare during peak hours, where the previous limit was 1.5 times. The Ministry of Road Transport and Highways has issued new rules. According to the new rules, fares during non-peak hours must be at least 50 percent higher than the base fare.
The government has instructed all state governments to implement these rules within three months. The ministry’s goal is to ensure that passengers get rides at fair prices during periods of high demand and to prevent companies from offering arbitrary discounts. State governments will determine the base fares for different types of vehicles such as taxis, auto-rickshaws, and bike taxis.