New Rules For Cab Aggregators: Centre may allow three times the base fare as surge pricing

BENGALURU: The Centre is likely to permit cab aggregators to charge customers up to three times the base fare during periods of high demand, according to a senior government official aware of the deliberations on a new set of regulations being drafted for the industry. Ride-hailing apps including Uber and Ola have long argued in favour of surge pricing to regulate the demand and supply of cabs on their platforms.

The soon-to-be-framed regulations will specify the allowable limit for such price hikes in addition to other guidelines that could be in line with those proposed in December 2016, the official told ET.

“Surge pricing is intrinsic to the demand and supply situation (of cab aggregators),” the official said. “Like with the December 2016 guidelines, our policy will mention surge pricing and what should be the kind of capping, among other things.”