
Chandigarh administration set to roll out fare checks for app-based cabs
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Chandigarh: To prevent mobile app-based aggregators from overcharging commuters, the Chandigarh administration will establish minimum and maximum fares charged by aggregators, with a cap on 'surge pricing'.
The Punjab Governor and UT Administrator, Gulab Chand Kataria, approved the 'Chandigarh Administration Motor Vehicle Aggregator Rules, 2025', which will be notified soon.
According to the rules, the city taxi fare, indexed by the Wholesale Price Index (WPI) for the current year, will serve as the base fare chargeable to customers using aggregator services. The Chandigarh Administration will notify taxi fares periodically.
The base minimum fare chargeable to customers using aggregator services will cover a minimum of 3 kilometres to compensate for dead mileage and the distance travelled, as well as fuel used for picking up customers.
Aggregators will be allowed to charge a fare 50% lower than the base fare and a maximum surge pricing of 1.5 times the base fare specified under the rules. This approach will promote asset utilisation, a fundamental concept of transport aggregation, and support the dynamic pricing principle, which is crucial for ensuring asset utilisation in line with market demand and supply forces.
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The rules also stipulate that the UT may, through notification, direct 2% of the total fare for each ride towards the state exchequer for amenities and programmes related to aggregator-operated vehicles. These vehicles have significantly reduced traffic congestion and pollution. The rules prohibit the use of private vehicles under the aggregator service, as many aggregators, particularly those operating two vehicles, are using private vehicles.
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