Ola, Uber may soon face fines for frequently cancelling rides in Maharashtra

A new rule proposed by a panel appointed by Maharashtra government suggests to impose a fee on drivers for each ride cancellation they initiate

Tired of the frustrating experience of cab drivers abruptly canceling your rides? Well, you’ll be pleased to hear that a promising solution may be on the horizon. According to recent reports, a panel established by the Maharashtra government in April has proposed a significant change in the way ride-hailing companies like Ola and Uber handle ride cancellations. This rule will take action as soon as the government approves of it.

This recommended reform states that there should be an imposition of a cancellation fee ranging from ₹50 to ₹75 on drivers for each cancellation they initiate. Unlike the current system where passengers are often burdened with paying the cancellation charges, the new recommendation suggests that a portion of this fee should be refunded back to the passenger who had their ride canceled. There have been no statements from Ola or Uber yet regarding this reform.

Sudhirkumar Srivastava, who is leading this committee, has articulated a vision. In addition to the proposed cancellation fee and refund mechanism, he has suggested an additional measure aimed at enhancing the reliability and punctuality of cab services. Under his guidance, the committee recommends that cab drivers should be held to a strict standard of punctuality, with a stipulated 20-minute window to reach the designated pick-up location after a booking has been confirmed. Any failure to adhere to this time frame or significant delays in reaching passengers would result in fines for the drivers.

In addition, the committee has suggested granting Regional Transport Offices (RTOs) the authority to assess the physical condition of aggregator cabs. If an aggregator cab is found to be poor in its physical condition, the RTOs may have the power to delist it from the platform. The committee as of now is working on a final report that will provide a more detailed and comprehensive framework for these proposed changes. Once this report is submitted, it will undergo its official approval processes from the government.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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