India to allow Uber and rivals to charge 20% commission

Industry experts had warned that a 10% cap would hit revenue and operations of the likes of Uber, which have faced increased regulatory scrutiny in several countries.
By REUTERS
| Updated on Feb 22 2021, 02:51 AM IST
Drivers of Uber and Ola walk next to their parked vehicle's during a protest in New Delhi, India, February 14, 2017. REUTERS/Adnan Abidi/File Photo
Drivers of Uber and Ola walk next to their parked vehicle's during a protest in New Delhi, India, February 14, 2017. REUTERS/Adnan Abidi/File Photo (REUTERS)

India will allow app-based taxi aggregators such as Uber Technologies and Ola to charge up to 20% commission on ride fares, according to guidelines issued on Friday, diluting an earlier proposal to cap fees at 10%.

The final guidelines, which are to be considered by the state governments when issuing licences to aggregators, say drivers should receive 80% of the ride fare with the taxi companies receiving the remaining 20%.

 

The government guidelines also recommended that so-called surge prices at busy times can be a maximum of 1.5 times the base fare and that companies must provide insurance cover for drivers and limit them to working no more than 12 hours a day.

India accounts for an estimated 11% of Uber's global rides annually and is SoftBank-backed Ola's home market.

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First Published Date: 27 Nov, 04:00 PM IST
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