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TN to notify first aggregator policy in fourth week of Aug

TN to notify first aggregator policy in fourth week of Aug

Time of India4 days ago
Chennai: Tamil Nadu is set to notify its first policy for cab, auto, and bike-taxi aggregators in the fourth week of August, aligning with the Centre's Motor Vehicle Aggregator Guidelines, 2025.
The govt has attempted to strike a balance between the interests of cab aggregators, drivers, and commuters in the policy.
Currently, the state has no framework for aggregators, leaving bike-taxis, in particular, to operate in a legal grey zone without defined fare rules, safety standards, or grievance redressal. A key element of the policy is that it will provide clear guidelines for bike taxis. Two-wheelers are now permitted only for personal use (white board) in TN.
Officials said the upcoming policy will license all digital ride-hailing platforms and set a licence fee of 5 lakh for a five-year term.
The policy will prescribe operating conditions such as number of passengers that can be accommodated and stipulate norms on luggage.
Govt has also fixed a base fare. While the Centre has not fixed a rupee value for base fares, the guidelines require states to set their own, covering at least the first 3 km.
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Tamil Nadu's policy is expected to follow the central model, permitting dynamic pricing between 50% and 200% of the base rate depending on demand. Draft provisions also mandate that drivers using their own vehicles receive at least 80% of the fare, while those in aggregator-owned vehicles get 60%, according to officials.
S Chandran, president of the Chennai taxi driver-cum-owner welfare union, said if enforced properly, it would eliminate drivers' demands for extra fare beyond app estimate. The draft guidelines will be issued via gazette, with final rules notified after feedback.
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