Latest news with #MotorVehicleAggregatorGuidelines2025
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Business Standard
19 hours ago
- Automotive
- Business Standard
59% users say app taxi services still unfair despite new govt rules: Survey
A whopping 59 per cent of app-based taxi users still face unfair trade practices and poor service, according to a recent survey by LocalCircles. This is despite the government introducing new rules to fix these issues. The survey, which took responses from over 75,000 people across 325+ districts, found that the main issues users faced were ride cancellations, surge pricing, and long waiting times. 82 per cent of users said drivers cancelled their rides, up from 75 per cent in 2023 62 per cent reported surge pricing, the same as in 2023 53 per cent faced long wait times, rising from 48 per cent last year 45 per cent were charged cancellation fees, nearly double the 23 per cent in 2023 'Drivers cancelling rides, surge pricing and long waiting times are top issues app taxi users have faced in the last 12 months; 1 in 2 experienced cancellations by the driver,' said the survey. The survey also pointed out that many users continue to face problems with drivers and vehicle condition: * 25 per cent dealt with rude drivers, up from 8 per cent in 2023 * 31 per cent found dirty vehicles * 6 per cent raised safety concerns, the same as last year Why are drivers cancelling rides? A large number — 74 per cent of users — said drivers cancelled trips after learning the destination or that payment would be digital. Although this is an improvement from 84 per cent in 2023, it remains a major concern. 'About 74 per cent app taxi users say that drivers cancel rides when they find out that the payment mode is digital, or the destination isn't convenient to them or both,' according to the survey. Motor Vehicle Aggregator Guidelines 2025 The Ministry of Road Transport and Highways has announced the Motor Vehicle Aggregator Guidelines 2025, giving app-based taxi services like Ola, Uber, and Rapido the go-ahead to charge up to twice the base fare during peak hours, up from the earlier 1.5x limit. During off-peak hours, the fare can not drop below 50 per cent of the base rate. States have three months to roll out these changes. The new rules also penalise unfair ride cancellations: * If drivers cancel rides without valid reasons after accepting them, they will be fined 10 per cent of the fare, with a cap of ₹100 * Passengers cancelling without a good reason will face the same penalty State governments will now fix base fares for different vehicle types, including bike taxis and auto-rickshaws. Aggregators must give drivers at least 80 per cent of the fare, and they must clear payments as often as agreed in their contracts. Despite new rules, users still unhappy Even though the new rules aim to protect consumers and give drivers a fairer share of the fare, many users remain dissatisfied. About 59 per cent of the respondents said unfair practices and poor service still continue, while only 18 per cent noticed any improvement. However, the number of users who saw no change dropped from 70 per cent in 2023 to 59 per cent, suggesting "some progress but not enough". A strong majority — 82 per cent — want the government to set basic common standards for all app-based taxi services and drivers. This number remains unchanged since last year. 'A total of 82 per cent of app taxi users believe the government should bring basic common standards for shared services like app taxi aggregators and their drivers,' added the survey findings. New competitors, but challenges remain The survey comes at a time of major change in the industry. The government plans to launch 'Sahkar Taxi', a cooperative-based service that lets drivers keep their full earnings without paying commissions to platforms. States like Karnataka, Goa, and West Bengal have also started their own taxi apps, but these haven't always lived up to expectations. Meanwhile, new companies like Rapido have entered the four-wheeler taxi market, but users say they still face problems with pricing, reliability, and service quality.
Time of India
2 days ago
- Automotive
- Time of India
Centre issues advisory allowing use of personal bikes for ride-hailing
BENGALURU: The ministry of road transport and Highways on Tuesday released a revised set of guidelines, Motor Vehicle Aggregator Guidelines 2025, advising states that the latter may permit the use of non-transport motorcycles (personal two-wheelers) for passenger journeys through aggregators, if they choose to do so. Tired of too many ads? go ad free now Clause 23 of the revised guidelines allows state governments to authorise the aggregation of such motorcycles under Section 67(3) of the Motor Vehicles Act and to levy authorisation fees on a daily, weekly or fortnightly basis. Aggregators are also expected to comply with conditions around safety, insurance, and rider onboarding. The guidelines are advisory in nature and are not legally binding unless adopted by individual states. This marks the first time the central government has officially included non-transport motorcycles in its policy framework for aggregators, providing a reference point for states to regulate bike taxis, an area that has so far operated in legal grey zones. The move comes amid ongoing litigation in states like Karnataka, where the High Court recently upheld a ban on bike taxi services in the absence of state rules. Aggregators such as Rapido, Ola and Uber have paused operations in the state, citing lack of regulatory clarity. 'The matter is still in courts so will avoid making any comments,' Karnataka transport minister Ramalinga Reddy told TOI. A Rapido spokesperson said the centre's decision to include non-transport motorcycles in its guidelines was 'a milestone in India's journey toward a Viksit Bharat.' The company added that the framework would support affordable transport in underserved areas, reduce traffic congestion, and create flexible livelihood opportunities. Tired of too many ads? go ad free now Rapido said it would work with state governments to ensure rider onboarding and compliance with the proposed authorisation framework. Legal experts said the centre's move could serve as a basis for state governments to frame their own rules. However, any resumption of bike taxi services will depend on whether states choose to adopt these recommendations and issue supporting notifications.
