comscore Tamil Nadu government to soon come up with new draft rules for Uber, Ola cabs

Tamil Nadu government to soon come up with new draft rules for Uber, Ola cabs

The decision comes in the wake of protests by drivers of Ola and Uber in metropolitan cities like Chennai, Hyderabad, Bengaluru Mumbai, and Delhi-NCR.


After the Maharashtra government, the Tamil Nadu government has announced that it is now working on a new rule book for app-based aggregators Ola and Uber in the state. The rule-book will be mainly focused on fares, driver regulation and regulatory framework for rides and safety standards. The move comes after a brief strike of cab drivers over the issue of incentives and other demands. Also Read - Indian mobile gaming market to shoot up to at least $5 billion by 2025: Report

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The guidelines have not been published as yet, but the state transport authority which drafts the rules for public transport has cleared a proposal about the same, reports ET-tech. With the new guidelines kicking in, we can expect the app-based taxi-service to usher in a more uniform approach.

We had sent the proposal some time back. We are expecting a government order soon. Since the state budget is being readied, the timing could not be predicted, but it is imminent. The proposal we had sent included fare determination too,” P Murganantham, joint transport commissioner, Tamil Nadu is quoted as saying. ALSO READ: Uber India launches new cognitive security feature called real-time ID check

Recently, the Maharashtra government had also announced a set of rules meant to regulate aggregators like Ola and Uber and put a cap on fares. The regulation will also allow the Kaali-peeli taxis to migrate to app-based operator, but under certain given conditions. As per the new rules, black-and-yellow taxis cannot do business as app-based taxis during peak hour and then go back to being metered taxis during non-peak hours.

After Delhi and Bengaluru, Ola and Uber drivers had also conducted a two-day strike in Chennai. Drivers were protesting against alleged falling incentives, stiff performance targets, and exploitation of labour. Reports further suggest that the drivers want fares to be fixed at Rs 100 for four km and Rs 17 for every additional kilometre thereafter.

Ola and Uber drivers have been protesting against the reduced incentives by the companies for months now. The strike was conducted to demand better perks, relaxed hours for targets, accident insurance, and a negotiation on the Rs 6 per kilometer fare, which is the minimum the two companies often tend to charge their customers.

In a fight to outdo each other in the app-based taxi service market, both the companies offered incentives and bonuses to the drivers. Later, in an attempt to surpass each other and gain more customers base, both the companies reduced their fares to as low as INR 3/km from the previous rate of INR 18/km. ALSO READ: Bengaluru hacker discovers security flaw that allowed free Uber rides

As for the latest development, people in Mumbai have been experiencing commuting woes, as nearly 1,000 tourist taxi drives have been a part of the protest called by Tourist Taxi Union Sangharsh Chalak Malak Sanghathana at Azad Maidan. The strike will be called off by 4PM today. Users have been complaining about the same on social media platforms the strike is already causing inconveniences to the traveler across the city.






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  • Published Date: March 14, 2017 3:50 PM IST

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