Latest news with #MotorVehicleAggregatorGuidelines
Mint
23-05-2025
- Business
- Mint
Tip us first: Why new Uber push faces government ire
The Central Consumer Protection Authority (CCPA) has raised concerns about Uber's 'advance tip' option. But Uber's not alone in this. What exactly is an advance tip? Is it unethical? And why has it drawn regulatory scrutiny? Mint breaks it down. Also Read | Covid cases are rising again. Should we be worried? Why are cabs pushing for advance tips? They ask users to tip drivers before booking a ride in exchange for faster service. Apparently this is to compensate drivers for frequent cancellations by riders. Ride cancellations have been the major pain-point in India's mobility sector for years. To be sure, it works both ways: 84% of app taxi consumers face cancellations when drivers are told the destinations and the preferred digital payment method, according to LocalCircles. It also discovered that the issue has intensified in the last two years. A guaranteed tip upfront might make drivers more likely to accept and complete rides. Also Read | Can Bangladesh afford to mix politics and trade? Is Uber alone in this controversy? No, Uber was actually late in introducing this feature. Bengaluru-based mobility startup Namma Yatri, launched in November 2022, was among the first to introduce advance tipping in India's ride-hailing ecosystem. The feature prompts users during the booking process to add a tip of ₹20, ₹50, ₹75 or ₹100, suggesting that a driver may be more likely to accept the ride if a tip is added. Following Namma Yatri, Rapido incorporated advance tipping into its service by late 2023. Ola also offered an option to add an advance tip, without suggesting a faster ride. Uber introduced this feature only in April 2025. Also Read | Mint Primer: US GDP contracts 0.3% in Q1—why the IMF still sees no recession How does tipping work globally? India is an outlier with this experiment. Globally, Uber's standard practice has been to prompt users to tip drivers after the ride is completed. The introduction of pre-ride tipping in India marks a departure from this norm. Other international cab aggregator companies including Lyft and Bolt, among others also enable tipping—but only after the ride ends. Why has the government stepped in? The CCPA sent a notice to Uber after a directive from food and consumer affairs minister Pralhad Joshi, who called the practice unethical and exploitative, raising concerns about consumer rights. A tip is given as a token of appreciation, not as a matter of right, after the service, he said. The argument is that the pay-to-prioritize model puts pressure on riders to pay extra. Reflecting broader scrutiny, the CCPA also pulled up Ola and Uber this year over charges of differential pricing for iOS and Android users. Are there any rules on trip cancellations? The Motor Vehicle Aggregator Guidelines (2020), introduced a penalty of 10% of the fare capped at ₹100 for cancellations by riders or drivers. But its enforcement has been inconsistent. In a first, Maharashtra on Tuesday came out with a policy providing for a 10% penalty on drivers and 5% on riders for cancellations. Other states, such as Karnataka, have implemented aggregator regulations focusing on licensing and operational guidelines, without specifically addressing cancellation penalties.
New Indian Express
29-04-2025
- Politics
- New Indian Express
Karnataka transport department to enforce bike taxi ban by May 14 amid riders' plea for livelihood
BENGALURU: Officials of the Transport Department are gearing up to implement the ban on bike taxis by May 14. In its order on April 2, the High Court of Karnataka gave six weeks to bike taxi aggregators to stop their operations. The court ordered the state government to ensure that the ban comes into force after six weeks. In a letter to Transport Secretary NV Prasad and Transport Commissioner Yogesh on April 25, Transport Minister Ramalinga Reddy directed them to take steps to ban bike taxi operations as per the court order. Sources in the department said, 'As per the court order, the ultimatum ends on May 14. The department has to ensure that the court order is implemented by then. Bike taxi aggregators will be asked to stop their operations by May 14. If they fail to do so, there will be no other option for the department but to seize the vehicles and initiate action against the aggregators.' On Monday, bike taxi riders met Reddy and submitted a petition, urging him to reconsider the decision to implement the ban order. Over 100 riders, including members of Namma Bike Taxi Association and those working with Rapido, Uber and Ola, met the minister. In the petition, the riders urged the minister to protect their livelihood. "The government should formally recognise bike taxis as a legal mode of transport and implement a structured policy framework to protect their rights," they said. 'We are not criminals. We are trying to earn a living with dignity,' said Ramesh K, a bike taxi rider and member of the association. He said, 'If bike taxis are legal in New Delhi and Maharashtra, why are we being denied this right in Karnataka?' Many poor college students, single parents, and those who lost their jobs during the pandemic have become bike taxi riders. They now face a bleak future because of the order, the petition said. Stating that the Union government's Motor Vehicle Aggregator Guidelines, 2020, recognised bike taxis, the petition stated that Karnataka is yet to frame such guidelines. N Reddy, a rider, said, 'If the government makes rules, we will follow them. There is no logic in taking away my only source of income in the absence of rules. How long should we wait for the government to make those rules?'
News18
22-04-2025
- Automotive
- News18
Maharashtra Government Greenlights Electric Bike Taxis For Cities: Safety To Fares, Details Here
Last Updated: All bike taxis must have a uniform colour with 'Bike Taxi' displayed clearly, along with mandatory GPS tracking, emergency contact options and background checks for riders The Maharashtra government has approved the launch of electric bike taxi services in all cities with a population of more than one lakh. This decision was taken during the cabinet meeting held on April 1, but the government resolution (GR) was released on April 21. The move is expected to boost urban mobility, especially in areas where public transport is limited. As per the government's order, only electric two-wheelers will be allowed for these services. Aggregators must have at least 50 e-bikes to apply for a licence, which will be issued by the State Transport Authority and will remain valid for five years. All bike taxis must have a uniform colour with the words 'Bike Taxi' displayed clearly, along with the service provider's name and contact number. To ensure safety and quality, the rules also include mandatory GPS tracking, emergency contact options, and strict background checks for all riders. The policy document also says that riders must hold a valid driving licence and a transport badge. The eligible age for drivers is between 20 and 50 , and they can work for a maximum of eight hours a day. Aggregators must provide proper training to drivers before they begin service. Special focus has been given to women's safety. All bike taxis must have a divider shield between the rider and passenger. During the rainy season, protective covers must also be provided. Children below the age of 12 will not be allowed to ride as passengers. The maximum ride distance is limited to 15 kilometres per trip. Fare prices will be decided and regulated by the respective Regional Transport Offices (RTOs). Aggregators must operate through a secure mobile app or website that meets all required safety and privacy standards. In addition, the state has also allowed electric two-wheelers to operate under a bike-pooling system. Riders can offer up to four rides within city limits and two rides outside the city each day. However, no commission can be charged by aggregators during such pooling. While speaking with News18, state transport minister Pratap Sarnaik said, 'Keeping the environment in mind we have made it mandatory for aggregators to have e-bikes to provide bike taxi services. Also, this will help city commuters to reach their desired location a bit quickly and will also give young riders a chance to earn a livelihood." This decision is based on the Centre's Motor Vehicle Aggregator Guidelines and recent directions from the Bombay High Court. Once the central government issues its final notification on the 2024 guidelines, the state will make necessary updates. First Published: April 22, 2025, 16:00 IST
