Chandigarh to regulate taxi fare, ride cancellation
Chandigarh’s draft Motor Vehicle Aggregator Rules-2024 regulate app-based taxis with a focus on fare transparency and eco-friendly practices. Key points include:
Electric & Alternative Fuels: Exempt from permits if commercially insured.
Fare Regulation: Base fare indexed by WPI; surge pricing up to 1.5x.
Penalties: 10% of fare (max ₹100) for cancellations by drivers or riders.
Driver Share: At least 80% of fare to drivers.
Safety: GPS required; ride pooling with female-only options.
From regulating taxi fares to penalty allowed on cancellation of rides in order to regulate and keep a check on the app-based taxis operating in the city, the Chandigarh Administration released the draft Motor Vehicle Aggregator Rules- 2024.
According to the draft rules, which were released Wednesday, the Chandigarh Administration has decided to “exempt the electric vehicles and vehicles running on ethanol or methanol from the requirements of permit subject to commercial insurance of the vehicle by the aggregator company and fulfilment of any other formalities registered for the purpose in order to reduce pollution”.
Not just this, the rules also focus on regulation of fares for the taxi drivers.
The draft rules state that “the city taxi fare indexed by Wholesale Price Index (WPI) for the current year will be the base fare chargeable to customers”.
And the “base minimum fare chargeable to customers shall be, for a minimum of 3 kilometres to compensate for dead mileage and distance travelled and fuel utilised for picking up the customers”.
As per the draft policy, “the aggregator shall be permitted to charge a fare 50% lower than the base fare and a maximum surge pricing of 1.5 times the base fare.”
The rules say that no passenger shall be charged for dead mileage (except when the distance for availing the ride is less than 3 km), and the fare shall be charged only from the point of boarding to the point of alighting.
It was specified that “the UT may direct 2% of the total fare for each ride towards the state exchequer for amenities and programmes related for aggregator operated vehicles, which have been helpful in reducing traffic congestion and subsequently reducing pollution.”
From the remaining amount of total fare, the driver shall receive at least 80% of the fare and the remaining charges shall be received by the aggregator. Any other taxes viz GST or otherwise imposed by the Central/state government shall be borne by the aggregator.
Provisions in case ride is cancelled
The draft rules mention that in case “on cancellation of a booking by a driver, subsequent to accepting a ride on the app, a penalty of 10% of the total fare not exceeding Rs 100, shall be imposed, when such cancellation is made without valid reason”.
However, on cancellation of a booking by a rider, “subsequent to booking a ride on the app, a penalty of 10% of the total fare not exceeding Rs 100, shall be imposed, when such cancellation is made without such valid reason. The said amount shall be divided between the driver and the aggregator in the same proportion.”
Compliance to ensure safety
The rules also speak about ensuring that GPS is installed in the vehicles. This shall ensure safety of the customer.
It was specified that “the aggregator shall ensure installation of vehicle location tracking device (VLTD) in vehicles from other states also for the safety of passengers.”
Ride pooling
The draft rules also permit that “the aggregators may provide pooling facilities to riders whose details and KYC are available who shall be travelling along the same route but with varied stoppages from one point to another.”
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