Latest news with #MotorVehicleAggregatorGuidelines
Time of India
5 days ago
- Automotive
- Time of India
TN to notify first aggregator policy in fourth week of Aug
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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Doctors Call These The 'Rolls-Royce' of Hearing Aids Hear True Learn More Undo You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai 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. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
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Business Standard
29-07-2025
- Business
- Business Standard
Blink and cost of milk is different: Uber surge tech now in supermarkets
Imagine you go to a grocery store, reach for a carton of milk, and by the time you put it in your cart, the price has changed. Not because of a special sale or a cashier's mistake, but because the price tag itself is now a tiny digital screen that updates in real time, multiple times a day. That's not science fiction. It's already happening across supermarkets in Europe and the United States, where electronic shelf labels (ESLs) are replacing paper tags. These dynamic digital labels are quietly revolutionising grocery pricing — and possibly introducing a future of real-time 'surge pricing' for basic staples. According to a report published by T he Wall Street Journal, ESLs are already in use at several major US chains and allow grocers to change prices up to 100 times a day. Retailers say the shift from traditional paper tags helps reduce labour costs and paper waste, while enabling faster markdowns on perishables. However, the same infrastructure raises the possibility of surge pricing, price increases during high-demand periods, prompting concerns from regulators and shoppers. How retailers are using dynamic digital pricing In Europe In Norway, REMA 1000 uses ESLs to make real-time pricing adjustments in order to stay ahead of competitors. The Wall Street Journal reported that prices on certain items like milk or eggs may change dozens of times a day, especially around holidays. In the Netherlands, Albert Heijn, part of Ahold Delhaize, uses ESLs in over 1,200 stores. The system monitors near-expiry items every 15 minutes, discounting them up to four times daily—starting at 25 per cent and going up to 90 per cent—to minimise food waste. The company estimates this has reduced waste by over 250,000 kg annually. However, despite the tech, stores occasionally still use physical stickers because early trials showed customers often missed digital discounts. In the United States Walmart has deployed ESLs in more than 400 of its nearly 4,600 stores and plans to expand to cover half of its locations. Kroger and Whole Foods are piloting ESLs. Lidl US began rolling out ESLs in 2024. In India: Dynamic pricing is limited to transport, hospitality In India, surge pricing is restricted in certain sectors. The Ministry of Road Transport and Highways recently issued the Motor Vehicle Aggregator Guidelines, 2025, which permits cab aggregators like Uber, Ola, and Rapido to charge up to 2x the base fare during peak hours. The updated guidelines are an expansion from the previous limit of 1.5x. There is no equivalent model for dynamic pricing in retail or grocery stores. Real-time pricing tools such as ESLs are not yet widely adopted in Indian grocery stores. Why lawmakers and consumers are worried The potential for real-time price increases on consumer staples has raised red flags among policymakers and consumers: In the US, Senators Elizabeth Warren and Bob Casey (now retired) wrote a letter in 2024 to Kroger expressing concern that digital tags could allow for price manipulation during holidays or natural disasters. The letter warned that ESLs 'appear poised to enable large grocery stores to squeeze consumers to increase profits". In the UK, Members of Parliament questioned grocery chains Tesco and Sainsbury's about surge pricing technology after reports from France indicated that prices for barbeque items rose alongside outdoor temperatures. Public reaction on social media has also reflected broader anxiety, with many users speculating whether essential products might soon fluctuate in cost throughout the day. What is surge pricing? Surge pricing—also referred to as dynamic or demand-based pricing—is a strategy where prices fluctuate in real time based on demand levels. It is commonly used in ride-sharing, hospitality, and e-commerce. In the ride-sharing industry, platforms such as Uber and Lyft use this model to match driver availability with passenger demand, especially during rush hours or public events. Hospitality providers, including hotels and rental services, use similar mechanisms to adjust room rates during peak travel seasons. E-commerce platforms also employ dynamic pricing during flash sales or product launches to balance inventory and maximise revenue. What retailers are actually doing with ESLs Despite the concerns, retailers have been clear about the current uses of ESLs: The main objective is to save labour by eliminating manual price changes and reducing environmental impact by cutting down on paper tags. Most grocers, including those in Europe and the US, state that price reductions—especially for near-expiry goods or to match competitors—are the primary use. According to REMA 1000 and Lidl, any price increases are done overnight to avoid confusing or upsetting customers. Will surge pricing really come to the grocery aisle? So far, there is no concrete evidence that US grocery retailers are using ESLs for demand-based pricing. According to a McKinsey & Company report, real-time analytics and predictive modelling are increasingly enabling such pricing strategies across sectors. A 2021 report stated that dynamic pricing" doesn't necessarily require ultrasophisticated software that changes every product's price multiple times a day". Adding that even traditional retailers can benefit from "merchant-informed, data-driven algorithms that recommend price changes for selected products at some level of frequency". However, a study by researchers from UT Austin, UC San Diego, and Northwestern University added that real-time surge pricing, especially in physical stores, is unlikely due to two key constraints: In-store demand is difficult to track at the necessary granularity for algorithm-driven pricing. Customer sensitivity to price shifts is high. Shoppers may abandon purchases if prices increase before they reach checkout. What comes next for grocery pricing? While real-time price hikes remain rare, ESL adoption is expected to expand: More US grocery chains are likely to introduce the technology to streamline pricing operations. Intraday price reductions—especially on perishable or seasonal items—are expected to increase in frequency. Price increases during active shopping hours are still considered unlikely due to reputational risks and customer trust concerns. Fast food sector also experimenting with surge pricing Last year, fast-food chain Wendy's announced plans to test a dynamic pricing model for menu items in 2025. Under the proposed model, prices would vary during the day based on demand; however, it clarified that they would not raise prices during peak hours. While the company said that the rollout would begin as a test, as of July 2025, no surge pricing has been implemented. Following the announcement, Gizmodo conducted a survey that found that 52 per cent of respondents equated surge pricing with price gouging, while 65 per cent said it would complicate food purchasing decisions. The bottom line Electronic shelf labels are giving retailers unprecedented control over pricing and operations. So far, they are mainly being used for efficiency gains and markdowns, not for surge pricing. However, as the technology becomes widespread and as other industries explore real-time pricing models, the conversation around transparency, fairness, and digital automation in pricing is set to intensify.
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Business Standard
16-07-2025
- Automotive
- Business Standard
Motor Vehicle Agreegator Guidelines: Empowering drivers, customers alike
The promise of flexibility, independence, and technological ease has attracted millions of drivers to app-based ride-hailing platforms in recent years. However, rising commissions, unclear policies, arbitrary suspensions, and lack of protections turned that promise into frustration for many. These challenges, experienced by over 3 million gig drivers across India, highlighted the urgent need for comprehensive and enforceable regulation. In response, under the visionary leadership of hon'ble Prime Minister Narendra Modi and guidance of Nitin Gadkari, the Ministry of Road Transport and Highways (MoRTH) had earlier released the 'Motor Vehicle Aggregator Guidelines, 2020' under the Motor Vehicles Act, 1988. These offered a regulatory framework empowering state governments to license and oversee aggregators fuelling the growth of the ride-hailing industry. Yet, with growing concerns over safety, fairness, and accountability for both drivers and passengers, MoRTH has now introduced the Motor Vehicle Aggregator Guidelines, 2025: a major policy update to bring structure, safeguards, and inclusivity to India's digital mobility ecosystem. These guidelines, built on the legal foundations of the Motor Vehicles Act, 1988 aim to regulate the operations of app-based cab aggregators such as Ola, Uber, Rapido, and others. More importantly, the guidelines seek to provide balanced benefits to both drivers and passengers, while aligning with constitutional mandates and judicial directives. One of the most notable aspects of the 2025 guidelines is protection of drivers' interests. Until now, drivers associated with aggregator platforms often found themselves in a precarious situation with low earnings, arbitrary off-boarding, lack of insurance, and insufficient legal recourse. The new guidelines seek to address these systemic gaps. The guidelines require aggregators to ensure a minimum guaranteed earning per hour, or day, based on base fares notified by the states. It also mandates that fare settlement between the aggregator and the driver must be done on a daily, weekly, or fortnightly basis, based on mutual agreement. This move is expected to eliminate the earnings volatility faced by thousands of drivers, especially during lean periods. In addition, the government now requires every aggregator to provide health insurance of at least ₹5 lakh and term insurance of ₹10 lakh. These protections bring gig workers into the fold of formal labour structures. Further, the new guidelines introduce transparency in commissions, capping the aggregator's share at 20 per cent of each fare in most cases. This ensures drivers retain a fair portion of their earnings. Aggregators must also provide clear and itemised information regarding payment deductions, fare splits, and penalties. The guidelines also require each aggregator to establish a formal grievance redressal system, where issues like ride cancellations, payment disputes, or suspensions can be addressed in a time-bound and transparent manner. Drivers will also receive periodic training including a 40-hour induction programme covering app usage, emergency response, road safety, traffic rules, gender sensitisation, Divyangjan awareness, customer interaction, digital literacy, and more., making them better equipped for future mobility challenges. For passengers, the guidelines are equally transformative. With rising concerns around ride safety, data privacy, and fare manipulation, the new guidelines bring in much-needed safeguards. All drivers on aggregator platforms must undergo mandatory police verification, health check-ups, and behavioural training. Furthermore, every vehicle must be equipped with in-app emergency buttons, GPS-based tracking, and trip-sharing features, all of which enhance the safety of riders, particularly women and children. A 24x7 control room and helpline system must be established by aggregators under state supervision. Another major passenger benefit is the regulation of fares and surge pricing. The guidelines set clear limits: surge fares are capped at 1.5 to 2 times the base fare depending on state policy, ensuring that passengers are not exploited during high-demand periods. In addition, the platforms are required to display fare breakdowns transparently, including base fare, dynamic charges, aggregator share, and government taxes. Crucially, the guidelines also take into account the privacy of users. Aggregators are instructed to store user data on servers located within India and to abide by data protection frameworks, including Digital Personal Data Protection Act, ensuring data is not misused or leaked, and is retained according to India's sovereign data policies. Aligned with PM Modi's vision of Viksit Bharat@2047, which emphasises inclusive and sustainable growth, and his unwavering commitment to upholding the honour and self-respect of Divyangjan , the guidelines mandate that a portion of aggregator fleets be made Divyangjan-friendly and an appropriate representation of Divyangjan as drivers in the workforce is to be ensured. The exact number of such vehicles will be determined by individual states based on local needs and requirements. In a major push for sustainability, aggregators are required to transition towards electric mobility, alternate fuel or zero emission vehicles in their fleet. Concerned air regulatory bodies will set state-wise EV targets for ride-hailing platforms, and the same aligns with India's climate and clean air goals. Public transport systems such as Delhi's DEVI buses are already examples of EV integration. The guidelines also align with Directive Principles of State Policy, particularly Article 39, which directs the state to ensure that citizens, including gig workers, have the right to an adequate means of livelihood. Additionally, Article 21 of the Constitution guaranteeing the Right to Life and Personal Liberty has been interpreted by courts to include the right to a safe working environment and the right to mobility with dignity. Several judicial decisions have reinforced the need for proper regulation in the ride-hailing sector. In People's Union for Democratic Rights v. Union of India (1982) and Olga Tellis v. Bombay Municipal Corporation (1985), the Supreme Court emphasised the right to livelihood as an integral component of Article 2. In the case of Uber India Systems Pvt. Ltd. v. Union of India (2020), the Delhi High Court upheld the right of state governments to regulate aggregator pricing and licensing, establishing that consumer interest must prevail over purely market-driven pricing models. These judgments form the legal basis for many of the protections extended to gig workers under the 2025 guidelines which is an attempt to balance the passengers' interest with profitability for motor vehicle aggregators yet prioritising the rights of often-neglected gig workers. On the lines of the Hon'ble PM's approach of 'Minimum Government, Maximum Governance', the new guidelines provide a light touch regulatory system. Now the aggregators can take a single license for all types of motor vehicles applicable pan-state within 60 days. It does away with the requirement for ride-hailing companies to have arrangements for a driving test facility. Rather they are now encouraged to take benefit of the Ministry's Scheme for Institutes of Driving Training and Research (IDTR), Regional Driving Training Centres (RDTC), and Driving Training Centres (DTC). These centres, funded by the central government, aim to make scientific training accessible even in remote areas with grants up to ₹17.25 crore for IDTRs, ₹5.5 crore for RDTCs, and ₹2.5 crore for DTCs based on population and geography. These institutes are not only equipping individuals with high-quality driving skills, but are also contributing to the creation of a pool of professionally trained drivers across the country. This initiative is expected to contribute significantly to enhancing road safety and reducing the incidence of traffic accidents on Indian roads. The government has set an ambitious target of reducing road accident fatalities by 50 per cent by the year 2030, acknowledging that road accidents currently result in an estimated economic loss of 3 per cent of the national GDP. The issuance of these guidelines reflects India's robust federal structure and constitutional provisions. According to the Seventh Schedule of the Constitution of India, transport falls under this Concurrent List and empowers states to create rules for the licensing and functioning of aggregators. Section 93 of the Act is particularly significant, as it enables the central government to issue such guidelines or licensing frameworks for this purpose. Although issued by the central government, the Motor Vehicle Aggregator Guidelines, 2025 may be followed by state governments and Union Territories, ensuring local adaptability. States have inter-alia been given the authority to: issue licenses to aggregators; monitor fare structures and surge pricing; enforce driver training and verification; penalise non-compliant platforms, authorise use of non-transport motorcycles for passenger journeys under shared mobility models, set and enforce electric vehicle targets for aggregator fleets. This division of responsibilities reflects India's model of cooperative federalism, where policy formulation is centralised, but implementation is context-sensitive and state-specific. The Motor Vehicle Aggregator Guidelines, 2025 represent a progressive and timely step towards reforming India's digital mobility ecosystem. The success of this initiative will hinge on effective enforcement, public awareness, and platform compliance. If followed by states, it has the potential to transform ride-hailing services into a safer, more accountable, and more inclusive mode of urban transportation, creating a win-win scenario for both drivers and riders across the nation. In a country where informal workers often remain invisible in policymaking, these guidelines mark a pivotal shift. They treat the app-based driver not just as a service provider, but as a worker with rights, dignity, and aspirations. They recognise the passenger not merely as a consumer, but as a citizen entitled to safe, affordable, and transparent services. The Motor Vehicle Aggregator Guidelines, 2025 represent a significant milestone for the digital mobility sector in India. By setting clear standards and responsibilities for aggregators, the guidelines emphasise fair earnings and social security for drivers, improved safety and convenience for passengers, and environmentally sustainable practices. This balanced and inclusive framework not only reinforces the foundation of India's growing gig economy but also aligns seamlessly with PM Narendra Modi's vision of Viksit Bharat @2047.
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Business Standard
09-07-2025
- Automotive
- Business Standard
No option for states to reject bike taxi norms: Rapido cofounder Guntupalli
Rapido — one of the largest players in the bike taxi commute business — says the new guidelines released by the central government on July 1, permitting 'non-transport motorcycles' for aggregators, no longer give states the option of rejecting the revised policy. Says Pavan Guntupalli, co-founder of Rapido: 'The guidelines permit states to have an additive policy but not the option to accept or reject the guidelines.' He adds that Rapido has always operated bike taxis with the understanding that there is already a provision in the Central Motor Vehicles Act for bikes to function as transport vehicles. 'The second clarification by the Centre reinforces this. They've now clarified that white plate motorcycles can also be used to support commute services.' The move is a major step forward and comes just days after the Karnataka High Court banned bike taxi services in the state, disrupting public transport, especially in Bengaluru. It also opens the door for many more states beyond the 17 that have already legalised bike taxi services to join in. The Motor Vehicle Aggregator Guidelines state: 'The state government may allow aggregation of non-transport motorcycles for passenger journeys as shared mobility through aggregators.' Guntupalli says the company's approach has always been to work with state governments. 'Each state is different, and we're aware of that. Depending on the state and city infrastructure or constraints, there may be a need for policy customisation or additional requirements. Now that the central government is being more vocal and direct in guiding states, our immediate step would be to ramp up efforts to collaborate with states where things are moving slowly, or not at all,' he pointed out. To put the business in perspective, estimates by Rapido and the industry say there are 9 million bike taxi riders across the country. Karnataka has around 600,000 of them across 17 cities, most of whom are local, accounting for under 7 per cent of the total bike taxi gig workforce. Of those, 150,000 gig workers are based in Bengaluru. Their daily earnings range from ₹90 to ₹120, with over 80–85 per cent coming from passenger commutes and the rest from delivery services, making this the largest gig employment category in the country. However, in terms of actual rides, Karnataka is a big player, clocking 15-20 million rides a month compared to 80–100 million nationwide. That gives it a 15–20 per cent share of all rides in the country.
Hindustan Times
04-07-2025
- Hindustan Times
RTO to begin crackdown on bike taxis in Mumbai, MMR
Mumbai: The Regional Transport Offices (RTO) will now start a crackdown on bike taxis across Mumbai and the Mumbai Metropolitan Region (MMR) following an internal order issued by the state transport commissioner Vivek Bhimanwar's office on Thursday. The order directed the RTO to catch bike taxis that continue to operate even though the service is yet to be legalised in the state. Officials at the state transport commissioner's office said that Rapido, Ola and Uber are ferrying passengers without obtaining mandatory permits. The order asks citizens not to use the bike taxis and urges them to prioritise their safety. 'We have asked the RTOs to take strict action against the unauthorised operations of bike taxis,' said a transport department officer. Officials at the state transport commissioner's office said that Rapido, Ola and Uber are ferrying passengers without obtaining mandatory permits. The internal order read, 'As per section 93 of the Motor Vehicles Act and the Motor Vehicle Aggregator Guidelines, it is mandatory for such companies to obtain proper permits. Under section 66, private motor vehicles cannot be used for passenger transport, and doing so may attract legal action.' This comes a day after transport minister Pratap Sarnaik, under an alias, booked a Rapido bike taxi from the Mantralaya to Dadar and found the service operating without permission. Last month, police cases were registered against Uber and Rapido for operating illegal bike taxi services. The state government is in the process of drafting rules and regulations regarding bike taxi operations in the state, and is open to suggestions and objections from the public.
